The price difference between the average direct and intermediary two-year fixed rate has shot up 69 basis points in the past year, according to data from Moneyfacts.co.uk.
The average intermediary two-year fixed rate is now 73 basis points more expensive than the average direct two-year fix, whereas a year ago the average intermediary product was only 4 basis points more expensive than the average direct deal.
Currently, the price of the average two-year fix for direct customers is 4.3 per cent and the average price of a two-year fix through intermediaries is 5.03 per cent, a difference of 73 basis points.
A year ago, the average direct two-year fix was 4.47 per cent and the average intermediary two-year deal was 4.51 per cent. The differential peaked at 85 basis points in March, when the average direct deal was 4.05 per cent and the average intermediary deal was 4.9 per cent.
The differential between two-year trackers is only 3 basis points, compared with 4 basis points a year ago, with the average direct deal at 3.8 per cent and the average intermediary deal at 3.83 per cent. However, despite the steady year-on-year comparison there has been considerable volatility in this price differential. For instance the differential was was 62 basis points last month in favour of direct deals.
The gap between the price of direct and intermediary five-year fixed rates has remained broadly stable over the past year.
Currently the average direct five-year fix is 4.81 per cent and the average intermediary deal is 5.05 per cent, a difference of 24 basis points. A year ago, the difference was 30 basis points, in favour of direct deals. The differential fell to 21 basis points last month.