GMAC launches BTL tracker

GMAC-RFC's research has identified landlords are facing a problem as the gap appears to be widening between purchase prices and achievable rents.

The product details are as follows:

• Tracker with a pay rate of Bank Base Rate (BBR) minus 0.01% (5.00%) for three years
• Reverts to BBR plus 0.99% (5.99%) for the remainder of the term
• Purchase or remortgage
• Maximum loan-to-value (LTV) of 85% LTV
• 5 year Early Repayment Cahrge (ERC) of 5%, 4%, 3%, 2%, 2%
• Rental assessment calculated at 100% of pay rate
• Arrangement fee of £1495

Jeff Knight, director of marketing, GMAC-RFC, said: “The BTL product offers a solution to the property investor in the current environment where mortgage rates may rise but rental rates may not. This product offers a lower rate of interest than competitors and existing products and an extremely low rental requirement.

“With a loan of £130,000, landlords could save £147 per month. To put this into perspective, for a landlord with seven properties at this average loan size, they could save £12,375.72 per year against the next best rate product currently available. For those in the South East and Central London area, they can expect more than double that amount. This opens up more opportunities to increase their property portfolios and remortgage existing properties due to end on their current initial product rate. ”