View more on these topics

GMAC-RFC offers rate/ redemption swap deal on adverse loan

GMAC-RFC has set up an adverse product that it claims offers the UK’s first-ever rate/ redemption swap.

The deal, called Merc, is at base rate minus 0.01 per cent until September 2010, which then rises to base rate plus 1.99 per cent, with a £2,995 arrangement fee. But if the base rate increases, the 3 per cent early redemption fee, which is in place until September 2010, will reduce by the same percentage as the Bank of England’s rise.

London & Country head of communications David Hollingworth says the rate is very competitive but brokers should factor in the “high” arrangement fee.

He does not think the rate/ redemption swap makes a difference to the deal.

He says: “I am not sure who the swap will be attractive to as the rate is good as there is no overhanging ERC so people are free to go elsewhere anyway after 2010. To be fair, the ERC is not a negative but it is a mainstream deal for those with an adverse credit history and not something prime borrowers will go for.”

Recommended

Credit act offers challenge powers

The Consumer Credit Act 2006 came into force last Friday and allows consumers to take complaints about lenders to the Financial Ombudsman Service and to challenge unfair credit agreements in court.

Name game

Now I know for certain that the captains for the financial services industry have completely lost the plot.In the space of a few days, we have had Liverpool Victoria rebranding as LV=, (but we are informed that the = is silent) and now GE Life has announced its new identity as Tomorrow. I wonder if […]

FSA offers free surgeries in the South

The FSA is offering financial advisers, mortgage intermediaries and general insurance brokers in Bournemouth, Portsmouth, and Southampton free surgeries in May.The surgeries will take place in Bournemouth on 15 May, Portsmouth on 16 May and Southampton on 17 May.They are one-to-one appointments, lasting up to one hour, with a member of FSA staff and allow […]

Keep calm and carry on?

We British are known for our stiff upper lip and just getting on with things. It’s part of our quirky cultural behaviour – like forming orderly queues, or saying sorry when it’s not our fault. Many of us just aren’t that great at talking about what’s bothering us. But if someone feels that the stresses […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment