These changes are effective immediately.
GMAC-RFC has also revised its Mainstream and Self Cert ranges to ensure there is a competitive choice across the board.
GMAC-RFC is urging intermediaries and packagers to consider trackers for their clients as alternatives to fixed rate deals.
At the moment, trackers are generally being priced lower than fixes and therefore carry less risk to the borrower.The market sentiment is that the Bank of England will cut the base rate two or three times in the next 6-12 months which means there will be some great opportunities for borrowers to make some significant savings on their mortgage payments.
Julie Gaskin, corporate relations manager at GMAC-RFC commented: “In the current environment, switching to a variable rate product that tracks the Bank of England Base Rate can be a very shrewd financial move. Variable rate products are currently showing significant savings over fixed rates. This means borrowers may benefit from even lower future monthly payments for expected reductions if the Base Rate is cut.
“Next year we expect to see more people turning towards trackers and we expect to see much higher volumes of this type of business coming through our doors. In particular, it will be Buy to Let investors who are likely to take advantage of the lower monthly repayments offered by tracker deals to help meet rental demands.”
