Egg, the digital banking and financial services provider, has for the fourth time topped a survey by Moneyfacts, to establish which mainstream lenders consistently offer the cheapest long term deals for mortgage borrowers.

The survey, which shows the total interest paid on a £100,000 standard variable rate mortgage, shows that Egg has had the lowest cost standard variable rate of 35 of the UK’s leading mortgages lenders.

The figures show that an Egg mortgage customer with £128,000 loan paid the same amount of interest in 2002 as an Abbey National customer with a only a £100,000 loan, something which Egg say highlights the Great British homeloan rip-off.

Managing Director Jerry Toher said:"This survey is a snapshot of the disgraceful rip-off practises of some of the UK’s highest profile mortgage providers. Whilst the top 15 best value lenders are predominantly direct providers - such as Egg - or Building Societies, borrowers with some the UK’s largest lenders again find themselves at the bottom of the pile - often paying over £1000 extra in interest per year.”

Mr Toher also explained why he thought that this award was a vindication of his company’s rate strategy of shunning cut price introductory offers: “By only having one mortgage rate all customers get the same deal, going against traditional lenders practice of subsidising new customers with loyal ones. We are delighted to be recognised as the UK’s best value provider of variable rate mortgages for the fourth time running.”

Mortgage Provider Interest payable on £100,000 SVR

Top:

Egg £4,740.00

Nationwide BS £4,740.00

HSBC £4,750.00

Bottom:

Woolwich £5,950.00
Difference to Egg £1,210

Yorkshire Bank £5,950.00
Difference to Egg £1,210

Abbey National £6,073.26
Difference to Egg £1,333

Moneyfacts survey criteria:
· Based on £100,000 loan and both mortgage customers paying respective SVRs.
· Figures are based on the rates paid by the majority of the lenders existing borrowers between 1.01.2002 and projected to 31.12.2002
· The top 35 is based on mortgage assets and the latest full year’s accounts.