The 0.25 per cent increase has impacted on GMAC-RFC’s unique 'MERC' mortgage which features the a rate:redemption swap. This is created as an innovative alternative to a cap, providing back-stop protection that allows borrowers to redeem at lower cost, and possibly no cost at all, if rates were to keep rising. Meanwhile, customers are enjoying a market-leading rate of bank base minus 1bp on extended criteria that allows borrowers with adverse credit to apply.
Jeff Knight, director of marketing at GMAC-RFC, commented: “A further rate rise has been widely expected. This is why we developed the unique redemption swap benefit. The ‘MERC’ mortgage has captured the imagination of brokers and has generated more visits to GMAC-RFC’s website than any product in our history".
