IF announces rate changes

Following the decision by the Monetary Policy Committee to reduce the base rate by 0.25%, Intelligent Finance will pass the full 0.25% reduction to all its variable rate mortgage-borrowers and is also make changes to its savings rates.

Intelligent Finance’s direct access savings will pay 4.5% AER/Gross from 1 up (previously 4.75%). Its Mini Cash ISA moves to guaranteed rate and ISA savers will receive 4.55% AER/Gross from 1 (previously 5.00%). The bank currently guarantees to pay 0.05% above base until 31 January 2006.

Intelligent Finance has a track record of providing consistently competitive rates to savers. After these changes, it will be paying 0.7% more on its DASA and 0.85% more on its mini-cash ISA than it did at the start of 2003, whilst base rates are just 0.5% higher over the same period.

As previously announced, Intelligent Finances tracker offset mortgages will start with rates from as low as 4.94% (previously 5.19%).

MoneyFacts* recently highlighted Intelligent Finance’s SVR as amongst the most competitive in the marketplace and on the back of this news the bank is reducing its SVR from 5.95% to 5.75%.

Nick Robinson, managing director, says: “Whilst it’s terrific to see our SVR singled out in it’s own right, what it does not illustrate is the true power of an offset mortgage. Add into the mix your current, savings and/or ISA accounts and customers could potentially shave thousands of pounds over the lifetime of their mortgages. In my view, offsetting offers one of the very best deals around.”

The banks non-offset tracker mortgages will start with rates as low as 4.74%, previously 4.99%.

The new rates will all be effective from 5 September 2005.