The bailed-out lenders, referred to by some as 'the Bank of Gordon' after the Prime Minster hailed himself as a saviour of the world economy, are actually more expensive, it is claimed.
On average their loans are more expensive on a true cost basis for first-time buyers and standard variable rates, says mortgage website mform.co.uk.
Its analysis shows the average first-time buyer with the Bank of Gordon will pay 5.02% while with the leading lenders who've not been bailed out the average rate is 4.865%. That equates to £48.67 a month extra on a £150,000 loan including all fees.
And on standard variable rates the average with Gordon's banks is 4.62% compared to 4.502% with the other top lenders. That equates to £14.75 extra on a £150,000 loan including all fees.
The analysis included Halifax, Intelligent Finance, Lloyds TSB, Cheltenham & Gloucester, NatWest, Northern Rock, Royal Bank of Scotland, The One Account and Scottish Widows as the brands indebted to the Prime Minister for the analysis.
They lined up against Abbey, Alliance & Leicester, Bristol & West, Britannia, Co-Op, First Direct, HSBC, ING, Woolwich and Nationwide to make a fair comparison.
'It is striking that despite all the Government action to boost the mortgage market that the bailed-out banks are significantly more expensive on many products,' said Francis Ghiloni, Marketing and Business Development Director at mform.co.uk.
'The Bank of Gordon might be the bank that likes to say yes and that is a good thing if it lends. It would be good though if it was also the bank that offered the best deals,' Ghiloni added.
'Borrowers should not necessarily always steer clear of the Bank of Gordon as some of the members offer good deals. The key to reviving the market though is more competition and the trend of the past few months has been a lack of competition.'
The best first-time buyer deal comes from First Direct with 3.29% for a 75% loan-to-value with Cheltenham & Gloucester has the best offer from the Bank of Gordon group with 4.09%.
On standard variable rates the best deal comes from the Government-backed Lloyds TSB and C&G on 4% while Bristol & West from the independent sector offers the best at 4.49%.
However Northern Rock with 5.34% and The One Account on 5.1% make the Bank of Gordon look less competitive. Scottish Widows with 6.45% for first-time buyers is the least competitive of the Bank of Gordon brands.