GMAC-RFC launches two-year fixed rate

GMAC-RFC has launched a new two-year fixed rate deal at 5.74% for the non-conforming sector.

GMAC Residential Funding is offering two fixed rate options. The first is at 5.74% up to 90% LTV, adverse credit allowed, up to £3000 CCJs in the last three years; up to two missed payments in the last 12 months or one in the last six months.

The second offers 5.99% up to 85% LTV, adverse credit allowed, up to £7,500 CCJs in the last three years; up to three missed payments in the last 12 months or one in the last six months, bankruptcy/IVA acceptable if satisfied/maintained more that one year ago.

Both rates carry an early repayment charge of 6% of the value of the loan outstanding in the first year; 5% in year 2; and 4% in year 3. There is no higher lending charge on either of these rates.

Gina Collman, head of corporate communications at GMAC-RFC, says: “Borrowers are looking for a degree of stability at the moment, especially when faced with volatile equity markets and unpredictable interest rates. Being able to manage repayments on borrowing for a fixed period is a valuable asset, especially at the current time when the financial landscape is not so clear. Being attractively priced, I anticipate these products being popular with mortgage introducers and their clients.”