Intelligent Finance Mortgages

Intelligent Finance was launched in 2000 to offer banking customers a fairer deal. Since then they've helped thousands of customers make more from the money they save, and pay less for the money they borrow.

Intelligent Finance is a division of Halifax plc, which merged in September 2001 with the Bank of Scotland to form a new banking group called HBOS. Since their in September 2000, they've provided a range of banking services, and created a radical new approach to personal finance.

Intelligent Finance was designed to save their customers money by linking the money their customers have with the money they borrow, reducing the amount of interest they pay on their borrowings, or increasing the level they earn on their savings

Intelligent Finance Offset Plan
Intelligent Finance think applying different rates of interest to the money you borrow and the money you save is unfair. That's why Intelligent Finance give you the option to link them together, reducing the amount of interest you pay on your mortgage, or increasing the interest you earn on your savings and current account.

Intelligent Finance call the products in your offset plan 'jars' and, although they're connected, Intelligent Finance show the balances separately, so you always know exactly where you are.

By offsetting your mortgage against your current account and/or savings balances, you can reduce the amount of interest you pay, and could repay your mortgage sooner. Instead of receiving interest on your credit balances, you pay none on your mortgage. Your monthly payment is not affected, so more of it goes towards repaying the capital.

And because you're saving interest, not earning it, there's no tax to pay. If you're a higher rate tax payer, the interest saved on your mortgage could add up to as much as the equivalent of earning 9.9% on your current account and savings balances.( Source - Intelligent Finance website 10-03-2005)

Intelligent Finance Mortgages......

With Intelligent Finance there are two ways you can choose to benefit:

Option 1 - Reduce the interest on your mortgage
Imagine, for example, you have a £100,000 repayment mortgage, charging you 6% interest. But, you also have an average of £1,000 in your current account during the month at 2% interest, and £10,000 in savings earning 4%.

Instead of earning interest on your current account and savings, you pay no interest at all on the first £11,000 of your mortgage.

Option 2 - Increase the interest on your savings and current account
You may have some money put aside, which you want to be able to access easily. By linking your savings to your mortgage you can earn the mortgage rate of interest on your savings, and still be able to get hold of your money when you need it.

And because you're not earning interest, there's no tax to pay - so the amount saved in interest paid could exceed the amount you'd otherwise earn by more than the difference between the borrowing and saving rates.

To find out more about Intelligent Finance mortgages, simply complete the Intelligent Finance Mortgage Quote to receive details of the Intelligent Finance mortgage to suit your individual circumstances. Alternatively call 0800 801079 to speak to a mortgage advisor.

 

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