View more on these topics

Standard fare from GMAC


Buy-to-Let Two Year Fixed Rate

Fixed-rate buy-to-let mortgage

Fixed term:
Until January 1, 2007

Fixed rate:
Up to 85% of valuation &#45 6.19%, up to 75% of valuation &#45 5.79%

Minimum loan:

Maximum loan:
Up to 85% of valuation subject to a maximum of £300,000, up to 75% of valuation subject to a maximum of £400,000, up to 65% of valuation subject to a maximum of £500,000
Income multiples: Rental income must be at least 125 per cent of lender&#39s standard variable rate

Arrangement fee:

Redemption fee:
3% until January 1, 2007

Introducer&#39s fee:
0.5% of original loan

Tel: 0870 4844484

GMAC RFC&#39s buy to let two year fixed rate is available at 6.19 per cent up to 85 per cent of valuation and 5.79 per cent up to 75 per cent of valuation.

Charcol product development manager Elliot Nathan finds it hard to see why anybody would recommend this over others on the market.
Nathan says: “It is hard to find anything positive to say about this product. At 0.5 per cent, the introducer&#39s fee is standard, the rates are uncomptetive and there are no flexible features. It is also very disappointing that it is not flexible in terms of the redemption charges and the rental calculation.”

He also dislikes the fact that the rental income is calculated at the standard variable rate and that there is no penalty free capital repayment facility. He adds: “At £495, the arrangement fee is on the high side, although it is at least a flat fee.”

Looking at products which will provide competition, he suggests BM Solutions, which offers a rate of 5.99 per cent for loans up to 85 per cent of valuation. However, he points out the arrangement fee is slightly higher at £599 but the rental calculation is based on the base rate plus 1.2 per cent, which he feels is better than being calculated at the lender&#39s standard variable rate.

For loans up to 80 per cent of valuation Nathan suggests Charcol&#39s two year mortgage only deal at 5.49 per cent, which offers free valuation and free legal fees. This mortgage offers a penalty free part repayment facility and the rental calculation is based on the pay rate, which Nathan prefers.

Suitability to market: Poor
Competitiveness of mortgage rate: Poor
Adviser remuneration: Average
Flexibility: Poor

Overall 5/10


Call for EU-wide compensation fund

The Financial Services Consumer Panel has called for a centralised European compensation fund to be set up. Speaking at a Treasury select committee meeting on the EU single market in financial services, FSCP chairwoman Ann Foster complained that the EU&#39s Financial Services Action Plan actively excludes consumers. Foster wants to see more measures put in […]

Prudential – PruHealth

Type: Individual and group private medical insurance Minimum-maximum ages: 18-70 Minimum group size: TwoMinimum premium: No minimum Maximum benefits: No overall maximum but limits will apply to some benefits Cover provided: Comprehensive plan &#45 unlimited inpatient benefits except psychiatric treatment up to 45 days a year, outpatient benefit &#45 unlimited benefits except chiropractic/osteopathy up to […]

Fidelity funds target India and China

Fidelity Investments has opened its Luxembourg-domiciled India and China focus funds to UK investors with the launch of sterling share classes for the two portfolios.China focus is managed out of Hong Kong by Patrick Lo and India focus is headed up by Michael Gordon.Both will be eligible for Pep and Isa investors and will carry […]

Interactive buys Moneywise magazine

Investment website Interactive Investor has bought consumer finance magazine Moneywise. Capital Accumulation, which owns Interactive Investor, bought the publication from the UK operation of Reader&#39s Digest Association for an undisclosed fee. The integration of Moneywise into CA is expected to be achieved by the end of the year.

Flexible reversionary trusts and estate planning

The suitability of different estate planning solutions will depend on the individual’s own circumstances, needs and objectives. When considering the different solutions available there is a trade-off between inheritance tax (IHT) efficiency and access. Overall a flexible reversionary trust provides a greater level of flexibility than a discounted gift trust and can offer individuals a […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm