HSBC has used research which indicates that direct-only mortgage deals have accounted for 93% of the market’s lowest rates over the last two years to justify its decision to ignore mortgage intermediaries.

Analysis of data supplied by Moneyfacts has revealed that of 96 mortgage deals which held the position of lowest rate in the market at some point over the last two years, only on six occasions could brokers beat the equivalent best loan offered by direct lenders.

By analysing the independent Moneyfacts data, HSBC looked at the lowest mortgage rate available from mortgage brokers and directly from lenders, across the four most popular mortgage categories: two year fixed, five years fixed, two year trackers or discounts and lifetime trackers.

The difference in rates was most significant for two year trackers and discounted mortgages, over the last two years, the cheapest direct mortgage has on average been 0.47% cheaper than the best deal available from brokers. Similarly for lifetime trackers the margin has been 0.32%, for two year fixes 0.26%, and five year fixes 0.19%. The average gap between all mortgages studied was 0.31%, for at typical £150,000 mortgage it equates to £465 per year in extra interest.

Martijn van der Heidjen, head of mortgages at HSBC, said: “This research shows just how much the mortgage market has changed over the last two years. With loans available from brokers failing to beat direct lenders lowest deals for over 90% of the last two years