It has cut its rates between 10 and 31 basis points on its mainstream and self-certification products ranges. It has also introduced a new loan-to-value (LTV) break at 85 per cent.
Julie Gaskin, corporate relations manager at GMAC-RFC, said: “We recognise that two-year fixed rates still remain the most popular so we know the reductions will be welcomed. With the loan-to-value break, more people will benefit from a competitive rate at the top end rather than having to pay a slightly higher interest rate.”
GMAC-RFC has reported to have received an overwhelming response on their new ‘Low Fix’ products which was specifically designed for clients who were looking for a lower interest rate where the average loan sizes are greater than the national average.
After the revamp, the two-year ‘Low Fix’ is priced at 5.59 per cent at 85 per cent LTV compared to 5.89 per cent for its ‘core range’ product.
Gaskin commented: “Where loan sizes are above £200,000, the broker would do best to recommend the new ‘Low Fix’ rate as the consumer will be financially better off than the core product. For areas where the loan sizes are lower such as the North of the country and Wales, it would be more advantage for them to take the ‘core’ product.”
GMAC-RFC has also reduced its buy-to-let products between 20-35 basis points, still offering the choice of rental incomes starting from 100 per cent of payrate with a low interest rate of 5.24 per cent.
It has also cut its fixed rates by 20 basis points on their near-prime and light range. The headline rate for a near prime two-year fixed starts from 5.75 per cent on their ‘Low Fix’. For non conforming clients where their loan is above £120K they would see a financial benefit from taking the new reduced ‘Low Fix’ mortgage.
Gaskin added: “We have listened to what our brokers have had to say and recognise that there are distinct regional differences and so therefore we need to be able to offer a wider choice as we know, one shoe certainly does not fit all.”
