Following last Thursday’s announcement by the Monetary Policy Committee to reduce the bank base rate by 0.25%, Intelligent Finance is to reduce its mortgage rates for all borrowers whilst protecting savers from the full impact of this reduction.
Commenting Grenville Turner, Chief Executive, Intelligent Finance, said: “These moves maintain our rates as among the best in the market. We now have our lowest ever mortgage rate since our launch and we have consistently protected savers from the full impact of Bank of England rate reductions. Our offsetting offer gives customers the chance to gain effective returns of up to 7.65% on their savings and pay no interest on some or all of their mortgage borrowings.”
These moves maintain Intelligent Finance’s rates as amongst the best available in the market and maintains its reputation for providing consistently good value for savers and borrowers alike.
The bank’s mortgage rate will reduce to 4.59% (variable) (previously 4.75% variable). The bank has reduced the rate on its three-month discount to just 2.99% (previously 3.25%), its lowest ever mortgage rate.
Intelligent Finance will now pay all direct savings customers a rate of 3.55% (AER/gross) from £1 up (previously 3.70% AER/gross) – ensuring all savers receive rates above the base rate.
This reinforces the banks’ policy of maintaining a highly competitive savings rate in the face of consecutive base rate reductions. Even following this change, the interest paid on £1 up has reduced by less than 1.5% since the bank launched despite base rates falling by 2.5% over the same period.
Its mini-cash ISA will now pay 3.90% (previously 4.05%) which exceeds Intelligent Finance’s guarantee to pay at least 0.3% above base until 5 April 2004. This guarantee is retained.
Intelligent Finance’s current account customers will receive interest of 2.75% (AER/gross) (previously 3.00% AER/gross) but could earn 3.55% (AER/gross) by connecting this with their Intelligent Finance savings account. Rate changes are effective from 5 August 2003.
