This is due to feedback from brokers who liked the concept of the ‘MERC’ and required a Self-Certification option.
GMAC-RFC was the first lender to launch a product which offered non-conforming criteria at a mainstream rate in April this year. The launch of ‘MERC’ into the self-cert market shows GMAC-RFC’s continued commitment to creating ‘mortgages for everyone’ and to offer a pioneering product offering.
The ‘MERC’ mortgage stands for “Mainstream rate, Extended criteria, Redemption swap, Creative solution. It is priced at the Bank Base Rate PLUS 0.24 basis points until September 2010 at which point it reverts back to BBR + 1.99%.
One of the other attractive features of the ‘MERC’ mortgage apart from the competitive rate, is the rate/redemption swap, exclusive to GMAC-RFC. This gives borrowers security that, if rates continue to rise, their cost to redeem reduces. For every 0.25% rise in Bank Base rate following completion of the mortgage, the early redemption charge reduces by a like amount and that reduction is locked in forever.
Julie Gaskin, crporate relations manager at GMAC-RFC, said: “The ‘MERC’ mortgage is a truly creative solution offering borrowers market leading rates and the added security of a redemption swap option for those concerned that rates may continue to increase as we have seen just last week. Of course the ‘MERC’ and new Self Certification ‘MERC’ still offers our award winning service meaning you can still obtain an instant mortgage offer. We decided to open this product up to the self-cert market because of the growing demand for this product and the success it has enjoyed.”
