HSBC becomes most competitive mortgage lender

HSBC overtook the Government-backed banks to become the most competitive mortgage lender during Q3 2009, according to analysis from Evaluate Technologies.

The research ranked mortgage deals across all product categories and lenders were awarded a point for each time they appeared in the top 10 in the three months to 30 September.

Although Government-backed RBS was the most competitive mortgage lender in Q2, it finished in second place with 18 points in Q3.

The introduction of a number of best-buy products from HSBC - including its 1.99% discount deal at the start of September- allowed it overtake RBS to reach the top with a score of 23.

Lloyds Banking Group also struggled with Halifax scoring just two points while Northern Rock did not feature.

Julie Speed, national accounts director at Evaluate Technologies, says it will be interesting to see whether HSBC can maintain the top spot in the coming months

She explains: "We have seen the beginnings of a high street rate war in September. While HSBC's discount deal has seen off the competitors over the last quarter, the introduction of a 1.98% deal from Woolwich in September may spark further competition in the market."