Revealed: the best and worst mortgage lenders of 2021
Coventry Building Society, First Direct and Nationwide happen to be named the best mortgage brokers of 2021, based on a mixture of customer feedback and expert Which? research into the deals they provide.
We spoke to more than 3,600 homeowners and analysed thousands of mortgage deals to find out which providers combined great customer service with unbeatable home loan rates.
Coventry Building Society, First Direct and Nationwide were so good that we named them Which? Recommended Providers.
Read onto understand how other major mortgage brokers fared, as well as the most typical issues homeowners face with their providers.
The UK’s best mortgage lenders
First Direct received four stars for overall customer service and offered more market-leading deals than any other provider.
In accessory for its table-topping deals, borrowers such as the method in which First Direct keeps them informed regarding their mortgage, its transparency on fees and it is online services.
Our other two Which? Recommended Providers (WRPs) are Nationwide – which has won the title for the seventh year consecutively – and Coventry Building Society, that is enjoying its second consecutive year as a WRP.
Nationwide was popular with homeowners because of its overall customer service and payment flexibility (scoring five stars for), while Coventry achieved a five star rating for its transparency of charges.
Principality Building Society, Yorkshire Building Society and Leeds Building Society also received high star ratings for overall customer support, but missed out on becoming WRPs because of offering not enough market-leading deals.
The UK’s worst mortgage lenders
At another end on the table, Chelsea Building Society fell from 14th place out of 25 lenders this past year to very cheap in this year’s survey.
Customers gave Chelsea two stars for customer service, flexibility and cost for the money.
The specialist lender Kensington, which offers mortgages for people who struggle to borrow from mainstream lenders, finished second bottom.
Atom Bank and Family Building Society also fared poorly.
Mortgage lender reviews: the full results
The table below shows how lenders ranked for important elements of customer support, covering from value to money to online services.
How Which? rates mortgage lenders
In June and July, we surveyed 3,625 the public to find out how satisfied these were using their mortgage lender. We received enough responses to rank 23 banks and building societies.
We combined these customer ratings having a comprehensive analysis which providers offered the cheapest deals.
In July, our experts compiled 208 ‘top 10’ tables with different selection of borrowing scenarios, and counted every time a lender featured inside a table.
This resulted in we're able to rate lenders in line with the quality of both many and their customer service.
You will discover more about how individual lenders fared in our mortgage company review pages, which provide information on the kinds of mortgages each lender offers, including average rates and lending criteria.
Are UK homeowners pleased with their mortgage providers?
Overall, 86% of UK mortgage holders said they were pleased with their provider, and 82% said they'd recommend their lender to a friend or family member.
But despite this overall vote of confidence, 27% of house owners told us they’d had a trouble with their lender.
The main issues included poor customer service, a lack of flexibility and not being able to change to a cheaper deal, because both versions affected 5% of respondents, and poor interest rates and restrictions on overpaying, which were both a problem for 4%.
What are borrowers searching for in a mortgage?
Price and familiarity were crucial factors for homeowners when they chose their current mortgage company.
Around 1 in 5 (22%) respondents said they find the lender due to the size the monthly repayments, while a similar number (21%) said the overall cost from the deal was key.
Another 21% said a current relationship using the lender (i.e. using a bank account with the provider) was a main factor, a figure underlined by more than half (56%) of respondents saying they applied straight to banks rather than utilizing a mortgage broker.
When it came to selecting a deal, cost and adaptability were important aspects. The chart below shows featuring homeowners considered important when you compare deals.
Mortgage lending during COVID-19
It’s been a tough year for mortgage brokers and borrowers alike. The coronavirus outbreak led to banks seeing their resources stretched, while huge numbers of people were furloughed using their jobs.
This duration of crisis meant quality customer support became even more important than ever before.
Overall, 22% of homeowners told us they contacted or tried to contact their lender following the pandemic began, with 61% of those requesting a home loan payment holiday. But amid a barrage of calls from customers, banks struggled to process requests quickly.
More than 1 / 2 of the borrowers who contacted their lender (56%) said they'd a problem. Being stuck on hold for a long time (29%) and never hearing back after leaving a message (17%) or email (12%) were the most common complaints.
If you’re still having problems paying your mortgage because of COVID-19, you can obtain a loan payment holiday until 31 October.
If you’re looking to obtain a mortgage to buy a new home or switch to a less expensive rate, you may find the procedure takes much longer than normal, with banks still can not keep up with demand.
Which? suggestions about getting a mortgage
If you’re wanting to get a mortgage and don’t know where to start, we’re here to help.
Our mortgage guides provide advice on from saving for any deposit to finding the best deal and trying to get a mortgage.
If you’re already a house owner, you'll find suggestions about switching deals in our guides on remortgaging to get a cheaper deal or to release equity.
