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Best national building societies 2003

Top ten lenders over ten years Best national banks Best national building societies Best regional lenders Best centralised lenders Best local lenders Top lenders by category How the figures were calculated

Year after year the local lender that comes top over ten years is also our overall top lender of the year. In 2002, Penrith Building Society took both honours and in 2003 they have done it again.

The society may have just one branch but over the past decade its mortgage customers have benefited from a cheaper deal than anyone at any larger organisation. Penrith's chief executive, Donald Davey, says the society's size is actually a factor in its success with low branch and administration costs meaning tighter margins. These savings can be passed on to borrowers through a lower rate.

The society offers a choice of mortgages, including discount rate deals and a flexible loan, and business is accepted from across the UK, although outside Cumbria lending is limited to 75 per cent loan to value (LTV).

The lender which came second over ten years and topped the five and two year categories has no branch as such. Stafford Railway Building Society accepts applications via the banking hall at its head office but most applications are made by the telephone and the internet. The society operates the same lending policy wherever in England and Wales you want to buy. "We were founded by the London and North Western Railway Company," says chief executive Mike Heenan. "We were set up to help railway workers so we have always lent all over the country."

Wherever in the UK you live and however you apply, you will be offered a choice of one product: the society's SVR mortgage. "We offer no cashbacks, no discounts, nothing of that nature," says Heenan. "We plough all of our resources into offering one product."

The loan is flexible which means the society allows overpayments, payment holidays and further advances. There are no redemption penalties, valuation fees or arrangement fees and the mortgage is available on residential and buy-to-let purchases.

Third place over ten years in this category and overall is Buckinghamshire Building Society. The society's success is due in part to its loyalty bonus scheme which, until recently, rewarded customers who had been with the society for over five years. This bonus came in the form of a discount off the society's SVR and saved borrowers on an £80,000 interest-only mortgage some £3,850.41 in the first ten years. However the loyalty scheme has now been dropped in favour of a low rate for all borrowers.

Click here for an explanation of how the awards are calculated.