Intelligent Finance (IF), the online arm of Halifax, the UK's biggest lender, has come under fire for cashing in on last week's interest-rate rise, reports The Times.
The lender, which specialises in mortgages offset directly against the borrower’s income, is about to impose an increase in its standard variable rate (SVR) of 0.35 percentage points, 0.1 more than the quarter-point base-rate rise. All IF customers will have to pay the new rate from tomorrow.
Nick Gardner, of Chase de Vere, the independent mortgage broker, said: “There is no excuse for lenders using a base-rate rise to improve their margins, and we see it far too often. It is not why the Bank of England makes these interest-rate decisions.”
The home loans offered by IF allow borrowers to offset their savings and any credit balance in their current account against the capital owed on their home.
A homeowner with, for example, a £200,000 mortgage and £15,000 in savings will see their monthly repayments increase by £42 a month, or £504, a year after the rate rise has taken effect.
RIJKMAN GROENINK, THE embattled chief executive of ABN Amro, has bowed to investor pressure and decided against joining the board of oil giant Royal Dutch Shell, reports The Guardian.
The ABN Amro boss, at the centre of the world's biggest financial services takeover, had been due to stand for election as a non-executive director at the Shell annual meeting tomorrow.
But the oil giant said today that Mr Groenink has now requested that his nomination be withdrawn, as he "wants to fully dedicate his attention to ABN Amro, given the current corporate activities around the company".
THE CBI STEPS UP its campaign for lower business taxes today by launching a new "tax taskforce", reports The Independent.
The 12-strong group, which comprises finance directors and heads of tax from some of Britain's biggest companies, will examine whether the corporate tax regime is still fit for purpose. It will also make recommendations about future policy to ensure UK companies remain competitive on the world stage.
It will be chaired by Charles Alexander, president of GE Capital Europe. Other members include Adam Little, head of UK tax and business tax services at BP, Ian Menzies-Conacher, senior taxation adviser at Barclays, and Mike Sufrin, director of tax at Rolls Royce.
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£300bn of liabilities
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Transfer from occupational scheme
Appointed by FCA and PSR boards