Mortgage-seekers still prefer building societies to banks

House-buyers looking to take out a mortgage will be confused today after heated exchanges between financial advice website Fool.co.uk and Nationwide, with the building society dismissing claims from Fool.co.uk that customers were wrong to rate building societies ahead of banks.

Fool.co.uk found that 61 per cent of people looking for self-cert mortgages and other products would prefer to take out their loan with a building society rather than a bank, with the same amount again preferring to discuss their personal finances with a building society.

The website claimed, however, that such opinions were misinformed, pointing to a higher rating for bank services than for those of building societies on best-buy tables, and to ignorance as to the bank status acquired by many companies still thought to be 'friendly' building societies.

Nationwide however disputed the claims, asserting that building societies offered the best long-term deals.

"A key objective of the banks is to please their shareholders whereas at Nationwide we are able to focus on delivering long-term good value to our members," said the company's executive director, Stuart Bernau.

Mr Bernau went on to highlight the face that Nationwide's mortgage products contained no unnecessary fees like higher lending charges on mortgages, perhaps leaving mortgage-seekers with building societies more confident in their choice of lender.

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