GMAC-RFC slashes rates on direct fixed rate mortgage products

GMAC-RFC have today announced a major review of their GMAC-RFC direct fixed rate products, by slashing their rates between 10 and 31 basis points on their mainstream and self certification products ranges.

They have also introduced a new loan to value break at 85%. Julie Gaskin, Corporate relations manager said “We recognise that 2 year Fixed rates still remain the most popular so we know the reductions will be welcomed. With the new 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 have 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.

In the new launch the 2year ‘Low Fix’ is now as low as 5.59% at 85% LTV compared to 5.89% for there ‘core range’ product. Gaskin continues “Where loan sizes are above £200k, 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.”

As an all status lender, GMAC-RFC has not left a stone unturned as it has also reduced the Buy To Let Products between 20-35 basis points still offering the choice of rental incomes starting from 100% of payrate with a low interest rate of 5.24%.

In a bid to remain the UK’s Number 1 Non Conforming Lender GMAC-RFC, have further reduced their fixed rates even further by 20 basis points on their Near prime and light range. Their headline rate for a near prime 2 year fixed starts from 5.75% 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.”