GMAC-RFC has slashed the rates on its Partners fixed rate products following a major review of the range.
The lender has extended the product range to offer more choice offering a low rate buy-to-let product with a rate starting from 5.39% for a two-year fixed rate.
The product fills a gap in the market where achieving rental incomes required is becoming more of a problem as it offers a rental requirement of 100% of the pay rate.
GMAC-RFC estimates that from a £130,000 loan this will save the client just under £1,000 per year on rental income requirements compared to the previous product available which equates to a 12% reduction.
It says the updated range means its packaging partners have more choice to be able to offer their clients, depending on their preference and circumstances.
For clients who prefer the core range they can still have a Partners two-year fixed rate which starts from 5.79% up to 75% LTV or 5.99% for above 75% LTV offering again a choice of rental calculation of 100%, 110% or 125%
The fixed rates on its sub-prime products have also been reduced with a 95% LTV Level 1 status product starting from 5.69% for a two-year fixed period.
Roger Brown, director of partners distribution at GMAC-RFC, says “ We have to work very closely with our distributor partners and listen to their feedback.
“They have asked for products that offer them choice and of course they have to be competitive which is why we have had a major review and substantially reduced most of our fixed rate products.”
He adds: “We still remain strong on our 95% LTV self-cert product that is exclusive to our partners.
“This now starts from as little as 6.69%. I’m very excited about the new launch and anticipate to get some very positive feedback on this range.”