Packagers lift GMAC-RFC business

GMAC-RFC Partners Division has announced a 137% increase in the business generated by its packager partners in its second quarter of trading during 2007 compared with Q1.

The lender says it has also recorded a huge increase in the number of buy-to-let mortgages sold during Q2 of this year, with a large proportion of these being sold through packagers, suggesting a potential change in direction for packagers which were long seen as specialists solely in the sub-prime market.

GMAC claims the boom in the buy-to-let market is down to first-time buyers delaying purchasing properties of their own until they can afford to meet high income multiples required to get onto the property ladder.

Roger Brown, head of the packager division at GMAC, says lenders that react quickly to changing market conditions are most likely to benefit from the buoyant buy-to-let market.

He adds: “GMAC-RFC is a long-standing supporter of packaging distribution and we’ve built our ‘Partners’ business model around selling mortgages through them. Packagers haven’t been the one-trick ponies some would have us believe for some time by just dealing with the non-conforming sector.”