Sub-prime lender GMAC Residential Funding is set to enter the mainstream market as part of a rebranding exercise.
The General Motors subsidiary is looking to capitalise on the global reputation of its owner by changing its brand at the same time as launching mainstream loans.
GMAC-owned packager Private Label has been the public face of the lender since it was taken over in 1998. But GMAC wants to take a more high-profile role and is changing its logo and literature to include the General Motors name.
Private Label's logo will change to the same design as GMAC, whose name will be included on the packager's literature. GMAC hopes Private Label's profile will bolster its move into the mainstream sector.
The first products to be offered under the GMAC lending brand will be a two-year fixed-rate mortgage at 4.99 per cent and a self-certification loan fixed at 6.45 per cent until May 2002. The loans then revert to GMAC's standard variable rate of 7.45 per cent.
GMAC marketing director Simon Knight says: “Leveraging the company's strengths in securitisation, lending and investment in the UK, we are already seeing the benefits of a global exchange of knowledge.”