Mortgage broker Trussle has hit back over claims that mortgages from building societies are cheaper than mortgages from banks.

Trussle CEO and founder Ishaan Malhi said “it’s a shame to see the myth of headline rates perpetuated in the mortgage market” responding to research from Moneyfacts.

“When we wrap in all the extra fees and incentives linked to the mortgage products currently on the market, it is banks not building societies that turn out to be cheapest for borrowers.

"Of the 30 banks currently offering a two year fixed product, the most competitive product from each lender would cost you an average of £14,014 over two years, far less than the average of £14,596 by the 34 building societies. It’s the same story in the five year fixed market.

“The average best true cost of the 31 banks is £36,336 over five years, some £1,046 cheaper than the £37,382 by the 27 building societies. “Yes, it can be useful to know what a lender is going to charge you in interest payments over the course of a mortgage, but there are so many fees and incentives to factor into the calculation that the rate itself can be a red herring. “True cost is the best way to really know how much a mortgage deal is actually going to cost you over the initial period. It’s this measure that we should be focusing on when comparing mortgage products."

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