Online banking service Intelligent Finance plans to add an IFA-dedicated section to its website from...
Online banking service Intelligent Finance plans to add an IFA-dedicated section to its website from early next year, writes Mohamed Ali Bernat.
The website, www.if. com, is launching a small business account in the summer of 2001 through which customers can run their residential or commercial mortgages.
Carolyn Kerr, intermediary marketing manager at Intelligent Finance, said this may lead to IFAs being able to use the service to help administer parts of Sipp and SSAS products.
The internet bank, a subsidiary of Halifax, takes 50% of its business from professional intermediaries, including affiliates, tied agents as well as IFAs, and offers five banking and savings products on which it pays commission.
These include mortgages, current accounts, personal loans, savings accounts and credit cards.
Commission for the mortgage is 0.35% of the loan followed by an annual 0.05% for the first three years of the agreement.
Savings draws 0.1% up front with an annual 0.1% based on the minimum monthly average premium over the year.
Current account and credit card accounts pay out a one-off £25 premium while 1% commission is gained on the first loan through the service with subsequent loans drawing 0.5%.
Kerr said it would be targeting the mortgage side of IFA business.
She added: "With the loss of income streams caused by the introduction of low margin products like stakeholder, IFAs will be looking at different income streams to sustain their businesses."
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