View more on these topics

Woolwich and Halifax in clash on interest deals

Woolwich and Halifax are going head to head by only charging interest on

the difference between customers&#39 borrowings and savings.

Woolwich has just set up the Open Plan “offset mortgage”, which it says

builds a virtual link between a customer&#39s secured borrowing and savings.

This is one of the core propositions of Halifax&#39s new venture, Intelligent

Finance, which starts next month.

While the Woolwich terms its interpretation of the concept as

“offsetting”, IF calls it “netting off”. Both lenders are adamant that

their offeringis superior.

The two companies are battling for superiority among intermediaries, with

the Woolwich paying brokers an introductory procuration fee of 0.5 per cent

for mortgages.

IF is paying commission on new mortgages at 0.35 per cent, 0.1 per cent on

savings up front when the accounts are opened plus 1 per cent commission on

first loans, 0.5 per cent on subsequent loans as well as £25 per

current account and credit card account opened.

Woolwich corporate public relations manager Rob McIvor says: “We have had

the Open Plan offset on the cards for a time now. The difference is that we

have waited until we are capable of delivering it before we started

promising it.”

Intelligent Finance head of sales Ian Jeffery says: “Even ignoring price

comparisons, the Woolwich is a pale imitation of the Virgin One account

without a credit card and falls well short of IF&#39s offering.

“It appears we are shaking up the market and this is evidenced by the

latest moves.”


Solo record set by Arctic balloonist

The Britannic Challenge balloon has successfully landed after arecord-breaking journey, making David Hempleman-Adams the first man to flysolo from Spitsbergen to the North Pole and back.In the early hours of Saturday morning, the balloon began its descent overSpitsbergen. It was a difficult landing, with the balloon draggingHempleman-Adams along the ground and the basket filling with […]

FSA conjures up stakeholder seminar

The FSA has written to pension specialists at leading life offices askingthem to attend a seminar to discuss stakeholder pension decision trees.Ironically, the seminar to discuss the issue which has baffled much of theindustry is to be held at the headquarters of the Magic Circle in London onJune 16.Life offices say they are waiting to […]

Advisers must urge clients to support Standard mutuality

With postal votes due in by June 23, time is running out for IFAs who wantto influence the future of Standard Life.The giant Scottish mutual is all too well aware of this and has sent outsample letters to intermediaries urging them to advocate a &#39No&#39 vote totheir clients.For IFAs themselves, and for UK consumers generally, […]

Actuaries aim to improve switching information

The Institute and Faculty of Actuaries is aiming to improve the information provided to pension scheme members switching from defined benefit to defined contribution plans. The professional body has produced guidance notes setting out the information that should be provided to scheme members, to ensure the information they receive is both comprehensive and consistent. The […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm