Building societies outperforming big banks as Which? reveals the best and worst mortgage providers

Building societies have outperformed many of the high street banks in a survey of the best mortgage providers, new Which? research has revealed. 

Nationwide Building Society regained the title of Which? Recommended Provider (WRP) in the consumer champion’s annual analysis, and was this year joined for the first time by Skipton Building Society and Yorkshire Building Society.

The consumer champion surveyed over 3,400 members of the general public in July, with each provider receiving a customer score. Lenders with the highest customer scores have the best overall customer service. 

In order to receive the coveted prize of being a WRP, mortgage lenders must have achieved a customer score of 70%+, consistently offer table-topping mortgage deals across a range of product types and be fully covered by the Financial Services Compensation Scheme and Financial Conduct Authority (FCA) banking standards scheme. 

The three WRPs achieved the highest customer scores: Nationwide Building Society and Skipton Building Society topped the table with 78 per cent, while Yorkshire Building Society scored 75 per cent. All three of the lenders scored a full five stars for customer service and transparency of charges, and were also the highest scoring firms when it came to flexibility of payments, each with four stars. 

Other building societies also fared well in the consumer champion’s analysis. Coventry Building Society and Leeds Building Society posted solid customer scores of 70 per cent and 69 per cent, respectively.While building societies led the way, some of the country’s biggest high street banks slipped further down the rankings. Barclays, HSBC and Halifax received customer scores of 65 per cent, 65 per cent and 64 per cent, respectively. None of the firms managed to score above three out of five stars across categories including clarity of statements and flexibility of payments - two factors which may have taken on an increased importance for mortgage holders struggling with monthly repayments amid the cost of living crisis. 

At the bottom of the consumer champion’s analysis were Family Building Society, Kensington, Metro Bank and The Co-operative Bank for Intermediaries, all of which posted unimpressive customer scores in the mid-50s. While major lenders may be able to offer a more extensive range of products than building societies, smaller lenders could provide more tailored products that better suit customers’ particular circumstances, such as first-time buyers with smaller deposits or the self-employed. 

At a time when average mortgage rates across a number of product types have reached their highest levels since the 2008 financial crisis, good quality customer service has become even more important. Which? believes it is vital that banks are ensuring their customers are properly supported, with tailored support to meet individual customers’ needs. 

Firms are now subject to higher standards of care under the FCA’s Consumer Duty and Which? expects the regulator to take tough action against firms that fall below the required standards. 

Ele Clark, Senior Money Editor at Which?, said: 

“With mortgage rates at some of their highest levels for 15 years and alarming numbers of homeowners struggling to meet their monthly payments, customer service is more important than ever. 

“Our research has found that some of the UK’s biggest building societies lead the way when it comes to quality service, with greater transparency over charges and - crucially - flexibility when making payments.

“The Financial Conduct Authority has now set higher standards in its Consumer Duty, raising the bar for customer service - and firms that fail to meet that bar should expect to face tough consequences from the regulator.”

-ENDS- 

Notes to Editors 

Which? surveyed 3,495 adults in the UK who have a mortgage. Fieldwork was carried out online by Focaldata between 5 and 24 July 2023.

About Which?

Which? is the UK’s consumer champion, here to make life simpler, fairer and safer for everyone. Our research gets to the heart of consumer issues, our advice is impartial, and our rigorous product tests lead to expert recommendations. We’re the independent consumer voice that influences politicians and lawmakers, investigates, holds businesses to account and makes change happen.

As an organisation we’re not for profit and all for making consumers more powerful. The information in this press release is for editorial use by journalists and media outlets only. Any business seeking to reproduce information in this release should contact the Which? Endorsement Scheme team at.