GMAC-RFC launches competitive two-year fixed rate mortgage

GMAC-RFC has today sent out clear signals regarding its appetite for market share. It has announced the launch of a mainstream two year fix which, at 5.25%, is believed to be one of the most competitive products of its type available from an intermediary-focused lender.

Announcing why it had reduced its mainstream fixed rates shortly after a base rate increase, Simon Knight, recently appointed Chief Executive of GMAC-RFC, said: “We have made this dramatic move for three key reasons:

First, to offer consumers fixed rate protection in a rising rate market at rates significantly cheaper than the market average;

Second, as a reminder that GMAC-RFC attaches equal importance to mainstream and specialist lending; and

Third, to put the wider market on notice that it can expect a continuation of fierce, but fair, competition from GMAC-RFC under my leadership”.

As further benefits, this new product, which is fixed to 1st July 2009, offers a free legal package. GMAC-RFC also has launched a product with a lower arrangement fee for an extra 0.5% on the fixed rates. This latter feature will be of benefit to mortgage customers with lower loan sizes, enabling intermediaries the length and breadth of the UK to benefit from this market-leading fix.

“We have generated almost £30bn in mortgage decisions in the six months since we launched POSO. Intermediaries have discovered that certainty, over-delivering on customer expectations and massive savings on their processing costs and time have been a real win, win, win. With this exciting new product, their experience will only be enhanced.” concluded Knight.