GMAC-RFC has revealed it will be re-pricing its non-conforming products over 85 per cent loan to value tomorrow.
It says it will confirm tomorrow how much it will increase its rates by but says its SVR will remain unchanged.
This comes after it announced to its partners that it will increase rates by 0.5 per cent on non-conforming products over 75 per cent LTV from tomorrow.
Corporate relations manager Julie Gaskin says: “This is a tactical move in response to the current state of flux we are seeing in the market. These are short term changes to enable us to be prudent with our balance sheet whilst the market readjusts itself. We will continue to monitor developments and review our products when necessary. The important thing to reinforce is that we remain fully committed to the sub prime market and see it as an important and growing area of the mortgage market that needs to be serviced by top lenders”.