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Long-term loan closes income-price gap

GMAC-RFC is offering a new mortgage which it says addresses two of the market&#39s main issues – long-term fixed rates and the gap between incomes and property prices.

It believes it has worked out how to make long-term fixes more attractive and how to bridge the gap between incomes and house prices without using self-certification.

On its new 25-year customised mortgage, GMAC-RFC charges no more than 5.95 per cent for 25 years on the fixed-rate element.

This is combined with a penalty-free base plus a 0.75 per cent tracker in five different customised options.

The company claims the security of the long term fix means clients can borrow up to five times their fully declared income. It says it has reduced the redemption charge for seven years of the 25 years on the fixed-rate portion only and clients can take the mortgage with them when they move house, borrowing more if needed at the variable tracker rate.

Head of marketing services Jeff Knight says: “Advisers and borrowers understand that paying no more than 5.95 per cent for the rest of your mortgage life is outstanding value. The problem with these products in the past has always been the redemption penalties, combined with concern about losing out to short-term rate reductions.”


Backing for home-reversion regulation

The Treasury should extend the regulation of equity release to home reversion schemes, the vast majority of respondents to its consultation closing this week believe. With more than 50 responses received, most – including Sofa, the National Consumer Council and the Financial Services Consumer Panel – support the FSA regulating the entire equity release market.

PTI appoints Richard Garland to head assault on health care markets

Personal Touch Insurance has appointed Richard Garland to set up its new specialist healthcare “supermarket” for intermediaries. Garland will become PTI health care director, having 20 years experience in the financial services industry, including being national account manager at BUPA. PTI is working to develop a network of financial services “superstores” in every town to […]

McFall has wrong perception of endowments

In the recent news item about the Treasury select committee, John McFall huffs and puffs about endowment policies (Money Marketing, February 5). He seems to link the shortfall on endowment performance with sales commission paid. His ignorance of fundamentals is amazing. However, he is a career politician, not an insurance and investment industry specialist, and […]

Confident IFAs plan to add RIs

IFAs are confident about the future for their businesses but are yet to embrace fees wholeheartedly, according to new research from financial services forum PIMS. The survey shows that 92 per cent of IFAs expect to grow their businesses in the next two years and 72 per cent expect the number of RIs in their […]


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