Building societies offer a better deal than banks when it comes to rates, according to figures from Moneyfacts.
The figures showed the average two-year fixed-rate from a building society is 2.27 per cent, 0.06 percentage points lower than the average offered by the main banks.
With five-year fixed-rates the difference is more pronounced, with the average building society rate at 2.59 per cent, 0.41 percentage points cheaper than banks.
Charlotte Nelson, finance expert at Moneyfacts, said that with two-year rates being an extra-competitive area for lenders, the difference was smaller than with five-year rates, but still significant.
"Building societies are offering borrowers a better deal when it comes to rates. For example, the average five-year fixed-rate mortgage from a building society is a whopping 0.41 per cent lower than that of one offered by the main banks," she said.
She added that the difference was particularly marked when it comes to first-time buyer mortgages, where all of the places in the best-buy tables are taken by building societies. At 90 per cent loan to value, the difference between banks and building societies is 0.72 per cent.
David Hollingworth, of London & Country Mortgages said that although average gave a picture of the market, banks were just as capable as building societies in offering market leading rates.
"People aren’t just interested in whether it is a bank or a mutual, they want the right fit for them," he said. "Smaller building societies do deserve credit for the niche approach they often offer though - based on individual circumstances, and they have been innovative, particularly in the first-time buyer space."