GMAC-RFC has launched a customised 25 year mortgage. Borrowers are able to choose between a fixed rate of 5.95 per cent, a variable rate that tracks the base rate plus 0.75 per cent, or combinations of the two.
The fixed rate is available at up to 5 times income, and the tracker has no redemption penalties.
Head of marketing services Jeff Knight says: “Advisers and borrowers understand that paying no more than 5.95 per cent for the rest of your mortgage life is outstanding value. The problem with these products in the past has always been the redemption penalties, combined with concern about losing out to short term rate reductions.”