GMAC-RFC has re-priced its Partners product range and is replacing current mainstream and self-cert discount rates with new BBR trackers.
The lender says that in the current market environment, borrowers should consider alternatives to fixed rate products and the benefits of variable rate products.
GMAC is now offering products with up to 75 per cent loan-to-value BBR + 0.50 per cent and up to 85 per cent LTV BBR + 0.80 per cent.
Its new rate in replacement of its self-cert discount rate is 75 per cent LTV BBR + 0.80 per cent.
Corporate relations manager Julie Gaskin says: “Yesterday’s hold on the Bank of England base rate was as expected, suggesting that we are likely to have reached the peak of the current interest cycle, with most experts predicting that it will either stabilise or reduce in the coming months. As such, switching to a variable product couldprove a shrewd financial move for borrowers as lenders can price more competitively.”
“In the current climate borrowers who have previously opted for a fixed rate product should look to a tracker mortgages as an attractive alternative. If predictions ring true and the base rate does indeed fall to around the 5 per cent mark, customers on variable rate products could see monthly repayments drop by almost £150, resulting in considerable savings over the mortgage term.”