The cascaded product system selects alternative products based on the client’s criteria if their first choice is declined. The broker can then view and select one that is appropriate. The system applies to mainstream, self-cert, buy-to-let and non-conforming mortgages.
Broker research revealed approximately 15 per cent of mainstream and 20 per cent of self-cert applications are declined with a quarter of mainstream and a third of self-cert declines due to adverse credit. In response GMAC has launched a product range that falls midway between mainstream and non-conforming, ‘providing a bridge between the two for borrowers who fractionally fall outside prime criteria’.
Jeff Knight, head of marketing services at GMAC, said: “In the increasingly hectic workplace saving time is one of the most valuable benefits a lender can offer to brokers. Our research shows a need for the cascade service across all product types and we have endeavoured to meet that need.”
Marketing communications manager Anna Bennett added: “We believe we’re the only lender offering this. It’s a utopian one-stop-shop for intermediaries giving them more choice and certainty.”
Andy Pratt, chief operations officer at Alexander Hall, said he welcomes the day when others follow suit. “Lenders who say a straight ‘no’ to applications are not helping themselves if their underwriters can’t come up with alternatives. If a broker has chosen a lender for more reason than just product criteria, the new range is a good thing.”
GMAC has launched a buy-to-let range to coincide with Cascade. A two-year fix offers 75 per cent LTV at 5.09 per cent and 85 per cent LTV at 5.19 per cent. The three-year fix has 89 per cent LTV at 5.19 per cent.
