The product is based on a 2 per cent discount of GMAC’s standard variable rate of 5.74 per cent, which gives an initial rate of 3.74 per cent.
The loan is available up to 85 per cent loan to value and is open to purchasers and remortgagors. In addition there are no valuation or application fees, and no redemption penalties at any time.
Philip Dearing, chief executive of Market Harborough Building Society, said: "We are delighted to be funding a follow-on product, as the ‘through lending’ process delivered exactly what it promised, including easy administration, high quality business, satisfied customers and full tranche utilisation."
In theory, ‘through lending’ is a partnership between two lenders where one lender markets the product as it’s own and releases funds for completion. The other lender purchases the loan on the day of completion or when a certain portfolio size has been reached. The marketing lender gets to add the product to its range, even if it is a product that it does not wish to fund, and the acquiring lender gets cost effective mortgage assets.
