The lender blamed the continued pressures on the money markets for the adjustments, which will see it increase rates and narrow its criteria.
All the lender’s non-conforming rates will go up by 0.75 per cent, while it is also increasing its mainstream self-cert and buy-to-let rates by 0.5 per cent.
On the criteria side, GMAC-RFC is reducing its maximum loan-to-value from 95 per cent to 90 per cent and it has also scrapped its non-conforming product which allows unlimited CCJs and defaults.
Jeff Knight, head of marketing at GMAC-RFC, said: “Lots of non-conforming lenders have had to put their rates up, while others have had to withdraw from some markets. Also, competition from the new entrants into the non-conforming market had pushed rates down anyway so the market is now taking the time to correct itself, which it probably would have done at some point without the pressures being applied by the capital markets.
“The market is going through a correction and we want to make these changes to reflect current market conditions. We are not ruling out further changes to our product range in the future but we remain committed to delivering a strong service to our customers.”
