IF keeps its head with intelligent deals

A low-rate flexible mortgage that trumps Standard Life Bank's hugely popular offering was launched this week by Intelligent Finance (IF), the Halifax's internet and telephone bank.

IF (www.IF.com) opens on Friday, July 14 and its standard variable mortgage rate will be 6.8%, substantially less than the 7.74% charged by most high street banks. It has just one mortgage on offer, but it's a good one: a flexible loan with a discount of 1.5% for the first six months, giving an initial rate of 5.3%.

That compares well with Standard Life Bank, currently offering a 1% discount off its 6.95% rate for six months. And, unlike Standard Life, the IF mortgage is penalty-free. The minimum deposit is 5% with flexible features - you can make overpayments, pay lump sums and take payment holidays.

Ray Boulger at mortgage broker John Charcol says the IF loan is competitive but there are cheaper deals if you are prepared to switch your mortgage every two years or so, or are not bothered about flexibility.

Mortgages are just part of the IF story. It has a current account paying 5% on credit balances, a savings account paying up to 6.25%, a credit card at 10.8% and a personal loan rate at 10.5 APR. Each is available separately but to tempt you into taking more it will have a "connectivity" system, offsetting savings against borrowings. So if you have £20,000 to pay on an IF mortgage and £21,000 in savings, you pay no interest on your home loan.