GMAC Residential Funding has introduced its first mainstream mortgage product for the UK market.
Aimed at first time buyers and remortgage clients, the companys two-year fixed rate mortgage has a rate of 5.49 per cent for loans to valuation (LTV) of 75 per cent, or 5.69 per cent for LTVs of 95 per cent. There are no compulsory insurances, no redemption penalties and interest is calculated daily.
The product has income multiples of 3.75 times the principal income plus the second or 3 times joint for loans up to 75 per cent LTV or 3.3 times principal income plus second or 2.75 times joint for loans up to 95 per cent LTV. The income multiples for loans up to 75 per cent LTV are above the current market average of three times principal income plus second or 2.75 times joint.
The lowest rate for a two-year mortgage with similar features on October 17, 2000 is the Northern Rock two-year fixed rate, with a rate of 5.39 per cent for LTV of 90 per cent.