Due to be launched at the end of March, the GMAC-RFC Partners proposition includes a range of products across mainstream, self-cert, buy-to-let and non-conforming markets, with the non-conforming market key to Partners future success. Products are to be provided exclusively to its packager partners.
Jeff Knight, director of marketing at GMAC-RFC, said the decision showed GMAC-RFC’s intentions in the market. “We are leading the way with a giant step by offering two distinct product ranges under one brand that will catapult us even further in front of the competition. By using GMAC-RFC’s strong brand reputation within both channels we can forge ahead with no conflict and a complete clarity for everyone,” he argued.
Partners will include 33 branded partners, with a further 35 packager partners, a move that Payam Azadi, head of corporate relations at Mortgage Times, argued would boost its distribution channels. He said: “It’s all about distribution. Over the past year the gap between small and large packagers has grown significantly and GMAC-RFC has taken the decision to concentrate its efforts. This proposition allows it to grow its distribution, while at the same time minimising risk.”
Vic Jannels, managing director at All Types of mortgages (AToM), one of GMAC-RFC’s partners, added: “We can see the benefit of the arrangement. What it is doing is differentiating between remote, oblique relations and the more direct.”
However Nigel Payne, managing director of The Mortgage Business (TMB), argued the decision by GMAC-RFC to end a number of packager relations would play into the hands of its rivals. “Some lenders may be selective with packagers they deal with simply as a cost reduction exercise. By cutting the number of packagers on its panels, it can streamline its distribution proposition. These lenders loss is TMB's gain. In fact, we are actively looking to expand our packager distribution.”
