Halifax puts IFAs at the centre of telenet bank

Halifax claims IFAs will be central to the future plans of its new telenet

bank Intell-igent Finance.

Unveiling its product range and rates this week, the bank says it is

providing intermediaries with a dedicated call centre and website in its

bid to attract more than 500,000 customers before the end of the year.

IF chief executive Jim Spowart described the launch as the single biggest

banking development in Europe and poss-ibly the world.

The bank says its offering, which goes live on July 14, could make more

than 94 per cent of the UK banking population of 18 million households a

total of £5.6bn better off, the equivalent of cutting 2p off thebasic

rate of income tax.

IF says these savings are possible because it combines competitive rates

with accounts where customers only pay interest on the difference between

their savings and borrowings.

The product range includes a flexible mortgage rate of 6.8 per cent.

It also features a current account at 5 per cent, savings accounts at up

to 6.25 per cent, a personal loan at 10.5 per cent and a credit card rate

of 10.8 per cent. IFAs will be ableto earn commission on allthese products.

IF says it has already signed up 18,000 advisers and expects 50 per cent

of its business to be introduced by IFAs.

At the press launch. Spowart highlighted comments made by ABN-Amro last

month which said IF had significant advantages compared with Virgin&#39s One

Account and the Woolwich Open Plan.

Spowart says: “Consumers have had to shop around across a number of

providers for individual products. This will become a thing of the past.

We are already seeing the market aping our products and rates.”