View more on these topics

GMAC sub-prime rate cut could spark off a war

Specialist lender GMAC is slashing rates across the board and offering over 1,300 different mortgages following an overhaul of its non-conforming product range.

In a move it says could spark a mortgage war in the sub-prime sector, GMAC is cutting rates on its product range by an average of 1 per cent and adopting a “pricing for individuals” approach to lending.

It now claims to offer over 70 per cent of the cheapest mortgages available in the non-conforming market.

It also claims to offer the most comprehensive product range after revamping the traditional lending policy of lumping borrowers into “catch-all” categories of bad credit where borrowers with a wide range of circumstances, such as a customer with one county court judgment will end up paying the same rate as, say, a borrower with several CCJs.

GMAC says its new pricing policy abolishes this type of cross-subsidy by offering loans for every variation of bad credit.

GMAC marketing director Simon Knight says: “The non-conforming sector requires a specialist approach to underwriting. This is something that has caught out at least a couple of other late entrants to the market as they have discovered that it takes a wholly different approach for these types of borrowers.”

Recommended

ScotAm deals double whammy to income drawdown applicant

Bunglebusters makes a comeback this week after Scottish Amicable lost an IFA client&#39s income drawdown paperwork not once but twice. Abergavenny IFA Colin Thompsett claims his widowed client was left facing a lower transfer value as a result. The admin saga began last May when Thompsett&#39s client planned to transfer her NPI personal pension to […]

In the lap of luxury

The recent research carried out by my organisation on behalf of IFonline into the use of technology by mortgage advisers identified that as many as a third of all advisers now use laptop PCs as opposed to desktop machines. Personally, I have long been a convert to the benefits of having a PC that can […]

&#39Graduates&#39 galore

A recent communication from the MCCB referred to financial advisers who passed the elementary Certificate in Mortgage Advice and Practice (Cemap) / Mortgage Advice Qualification (Maq) as “graduates”. These two certificates are minimum benchmark qualifications certainly no higher than an A level. It is certainly disingenuous to those within or outside the industry who are […]

CBI economist replaces dove on MPC

The Bank of England is appointing Confederation of British Industry chief economist Kate Barker to its nine member monetary policy committee. Barker will replace DeAnne Julius, who has finished her three year term.Julius was well known for being one of the MPC&#39s most outspoken doves, wanting to keep interest rates high.Industry sources believe Barker will […]

How to balance bottom-up with top-down research in constructing multi-asset credit portfolios

In this short video, Azhar Hussain, head of global high yield at Royal London Asset Management, explains how his team balance bottom-up with top-down research in constructing multi-asset credit portfolios. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well as up […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment