The recent announcement by GMAC to
revisit its range of self-cert products is not a coincidence and neither should it be interpreted as a normal market development.
It is clear that this is a very deliberate step to grab the market by the throat and clearly fill the void that other lenders have created by their effective withdrawal.
GMAC has its much valued Star range which offers a sub 75 per cent LTV self declaration of affordability which has proved very successful to the flexible underwriting that is on offer.
Now we appear to have a move afoot to pull away from Star, perhaps because of the risk attached to the reduced underwriting, towards a purer style of self-certification with a declared income.
What should be borne in mind is the relative easy processing of the case initially via its online PosD system which users find simple to navigate and user-friendly in most ways.
GMAC's back-office processing currently works well which, in this day and age with so many lenders failing in service standards, is not something to overlook.
The new rates are a mixed bag. Some are very aggressive in pricing while others can be surpassed elsewhere. GMAC offers a one-year discount at 4.81 per cent and a two-year fixed at 5.89 per cent.
However, from a broker perspective, we at PMM tend to look towards the package, that is, if a case is easy to process and is there or thereabouts on the rate, we will have no problem in recommending that lender. After all, the client wants the case to complete.
Mark Mountney is managing director of Premier Mortgage Management