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Standard Life spurns rate war with Egg

Standard Life Bank is refusing to enter a price war with its arch rival egg and is increasing the cost of its Freestyle mortgage.

The Edinburgh-based bank is withdrawing its 1.33 per cent six month discount on its Freestyle flexible mortgage and replacing it with a 0.89 per cent discount off its current standard variable rate of 5.88 per cent.

The move comes one week after Egg, the direct banking arm of Prudential cut its standard variable rate by 0.2 per cent to 5.59 per cent.

Standard Life Bank managing director Jim Spowart says he remains totally committed to never offering loss-leading rates to compete for market share. He also believes the bank is on track to take a 15 per cent share of new lending after entering the market in January this year with the initial goal of completing £1bn in applications.

Despite Spowart&#39s claim, Standard Life Bank&#39s variable rate is significantly lower than traditional high street leader Halifax&#39s 6.85 per cent, Abbey National&#39s 6.75 per cent and Nationwide Building Society&#39s 6.45 per cent.

Managing director Jim Spowart says: &#34Our stance since launch has been to avoid the loss-leading rates by some of the other players in the marketplace.

&#34This marginal reduction in our discount rate now will allow us to keep our rates as one of the most competitive in the marketplace.&#34


Skandia revamps critical illness

Skandia Life is revamping its critical illness plan to cover policy holders who are struck down by bacterial meningitis.The life office says it is revamping its Lifetime Plan for the ninth time in eight years to reflect the growing number of recorded meningitis cases.It says the revamped policy is aiming to increase IFA confidence in […]

L&G launches one year fixed rate account

Legal & General is launching a new one year fixed rate savings account.The Term Savings V account is fixed at 6 per cent gross for savings of £2,500 plus, 6.25 per cent gross for £5,000 plus and 6.5 per cent gross for £10,000 plus.L&G Bank marketing director deposits Steve Leach says: &#34Term Savings V is […]

BAM confirms Britannic deal

Britannia Asset Management has confirmed its takeover by Britannic plc from current parent Britannia Building Society. The building society retains a shareholding.The price is believed to be in the region of £200m. BAM will manage an additional £10bn of assets under the deal taking total assets under management to £18bn.

Axa links with trade union to provide products and services to 400,000 members

Axa has linked up with the Manufacturing, Science and Finance Union to offer a new benefit service to its 400,000 members known as &#39MSF First&#39.Axa will offer a range of financial services, advice and insurance products in a joint venture with membership benefits trading company UNISERVICE.The five-year deal will be officially launched at this year&#39s […]


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