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Jo Roberts, director of Staffordshire-based Need An Adviser.com, said despite some huge fees that lenders were charging at the moment the Co-operative Bank was still the most competitive when it came to offering direct deals.

Ms Roberts said: "Some lender application fees are unbelievable at the moment and although the Co-operative Bank has raised their fees recently from £699 to £899, it is still the cheapest and the most competitive around.

"Because we are a fee based adviser we can go for the direct deals because the client just pays us for the advice. When I asked what deals they were offering intermediaries, it said standard variable rate, but it has lots of great deals if you go direct.

"At the end of May the Co-operative Bank's best direct deal was 5.99 per cent fixed for five years. There are no solicitor fees or a valuation fee, only the £899, which is still competitive. When you run them through the comparisons, what you pay back over the term of the loan, it is cheaper.

"The application process was very quick, four to six weeks on a remortgage and it has a free telephone number for the client to ring. Their staff were always very helpful. I used to work for the bank and I have to say they were a very good employer and they tend to get good staff.

"Administration staff and call centre staff were very helpful as well, obviously they have a lot of business going on at the minute so there were a few delays but when you are ringing a free telephone number nobody really cares.

"Generally, for fee-based advisers, the Co-operative Bank's schemes are very good."

Lender says...

Dan Barker, mortgage product manager for the Co-operative Bank said: "We pride ourselves on our openness and transparency and we now have a simple fee structure in place, with products either fee free or with an £899 fee.

"We are proud of our reputation for our high levels of customer service and we are committed to continual innovation across our range and ensuring we have a wide range of competitive deals available to suit all customers.

"In the current climate, we are keen to support first-time buyers and we offer flexible loans of up to 90 per cent loan-to-value for new customers, alongside guarantor and buy-with-friends options."

FACT

The Co-operative Bank is an ethical bank with its headquarters based in Manchester.

Bank of Scotland

Stephen Goldman, IFA for London-based Re-Financial Planning Limited, said he would like to use the Bank of Scotland a lot more as it provides a good service. However he said the rates were so bad in recent weeks he was giving them a wide berth.

Mr Goldman said "The service from the Bank of Scotland is okay but it is probably only because the rates are poor so it is not inundated with applications at the moment.

"The online system was fine and the valuation was done pretty swiftly. In general I have no real complaints about any part of their service.

"Generally they are a good lender because they do most of it online and, unlike a lot of them, they offer proper online underwriting so they actually mitigate the need for any form of human contact or touch unless it is absolutely necessary, which speeds up the whole process.

"If I do have any problems, the Bank of Scotland is usually quite good at resolving issues smoothly and quickly. In general it is a lender I would prefer to use more often if only its rates were better. But you cannot always have everything."

Lender says...

Maria Harris, head of sales for Bank of Scotland Mortgages, said: "At Bank of Scotland, service is at the heart of our proposition.

"Generally, we are known for our personal approach to underwriting and case management, so it is great to get positive feedback about our online system. Through the Bank of Scotland e-service system, advisers can submit applications for mortgages, further borrowing and insurance using pre-populated forms saving them time.

"Supporting our advisers in this challenging market is very important to BoS so by offering an efficient combination of technology and personal touch we aim to deliver outstanding service.

"It is also great to hear this adviser has had positive experiences with Bank of Scotland when dealing with our colleagues. At BoS we have a team of expert staff who understand not all clients' circumstances are the same."

FACT

The Bank of Scotland is the only commercial institution created by the original Scottish parliament to remain in existence.