This year’s Which customer satisfaction survey saw Principality reach a score of 80 per cent, with 97 per cent of borrowers reporting they were satisfied with their mortgage.
Nationwide and First Direct ranked joint second in the survey, both achieving a customer score of 77 per cent, and the top three lenders have now been labelled Which recommended providers.
The review surveyed mortgage customers on their levels of satisfaction with customer service, the mortgage application process and whether their lender was deemed to be offering value for money.
Julie-Ann Haines, chief customer officer at Principality Building Society, said the lender had made a number of changes over the past two years to improve its clients' experience.
She said: "It is much quicker for customers to complete their mortgage applications thanks to simplifying processes, while we have also made investments to improve our online service to complement the amazing personal and tailored service our branch and telephone colleagues provide.
"It would be impossible to achieve such recognition without the fantastic work of all our colleagues who look after the best interests of our members every day."
Kensington Mortgages ranked at the bottom of the satisfaction survey, with a customer score of 56 per cent, closely preceded by Accord Mortgages at 61 per cent.
Kensington received two out of five stars on the survey’s value for money rating - but a Which spokesperson suggested it was important to consider the lender specialises in accommodating borrowers with a poor credit rating and complex lending circumstances and therefore the rates offered may be higher to reflect the additional risk.
Kensington Mortgages said: "We continue to work on simplifying our business and enhancing the customer experience. Where customers are dissatisfied with their mortgage, we work closely with them to resolve any concerns. We take complaints from our customers seriously and have a dedicated team committed to resolving them as soon as possible."
A spokesperson for Accord Mortgages said the firm was surprised by the results.
They said: "We always welcome feedback and actively seek it on every case we do. We’re therefore surprised by these figures as our own independently conducted research shows 86 per cent of Accord customers say they are satisfied with the service they receive.
"We will continue to work hard to provide the best possible service to our intermediaries and their customers."
David Hollingworth, associate director of communications at London and Country Mortgages, has done business with Principality for a long time, and said he was not surprised by the good rating.
He said: "An ability to price competitively and back those products with great service is what borrowers are really looking for - lenders increasingly understand that it is crucial to offer the right blend of rate and service to remain competitive and many have upped their game on turnaround times, and higher volume players are also achieving strong scores."
Mr Hollingworth said Accord may not have rated as high as it would like, but had been working hard to improve its service recently and he expects the benefit of that work to be seen over time.
Mr Hollingworth added: "Of course it is also difficult to compare some of these providers on a like for like basis, particularly the more specialist brands that will be dealing with more complex underwriting issues.
"Service is still important of course but could be more vulnerable to longer processing times if more paperwork is necessary."
rachel.addison@ft.com
