GMAC-RFC new chief executive officer Simon Knight has marked the start of his tenure with the launch of a mainsteam two year fixed product at 5.25 per cent.
Knight says: “We have made this dramatic move for three key reasons. First, to offer consumers fixed rate protection in a rising rate market at rates significantly cheaper than the market average. Second, as a reminder that GMAC-RFC attaches equal importance to mainstream and specialist lending. And third, to put the wider market on notice that it can expect a continuation of fierce, but fair, competition from GMAC-RFC under my leadership”.
The new product, which is fixed to 1st July 2009, offers a free legal package. GMAC-RFC also has launched a product with a lower arrangement fee for an extra 0.5% on the fixed rates. This latter feature will be of benefit to mortgage customers with lower loan sizes, enabling intermediaries the length and breadth of the UK to benefit from this market-leading fix.
Knight adds: “We have generated almost £30bn in mortgage decisions in the six months since we launched POSO. Intermediaries have discovered that certainty, over-delivering on customer expectations and massive savings on their processing costs and time have been a real win, win, win. With this exciting new product, their experience will only be enhanced.”