The rate has been reduced to 3.55% up to 90% loan to value, and 3.75% for a loan to value of 95%.
The fixed rate period is extended until 1 May 2005, and together with the added benefit of a no early repayment charge tail, gives borrowers the combination of fixed rate protection with the flexibility of a penalty free exit. The product has the additional benefit of offering up to 25% penalty free partial repayment each year.
Commenting on the product, Peter Stimson, head of product development at GMAC-RFC said: "With today's economic uncertainty, clients are looking for both flexibility and value for money with their mortgages. Two-year fixed rate deals continue to be in demand from borrowers who are looking for a combination of an attractive rate and security of payment, so they can manage their outgoings and budget repayments. Clients also have the comfort of knowing that this product allows them the flexibility to reduce the balance in the fixed-rate period and reassess their options when the fixed rate ends."
Both rates carry a 0.35% introducer payment.
