GMAC-RFC explains base rate

12/11/2007

GMAC-RFC have rearranged its general and self-cert discount rate mortgages.

It has been confirmed by the lender about changes that have been made in response to the Bank of England’s decision to restrain interest rates at 5.75%.

Typical discount rate products will now trail the Bank of England’s base rate at +0.5% for 75 per cent LTV loans and +0.8 per cent for 85 per cent LTV loans.

Their self-cert discount rate has been switched via a tracker mortgage, and can lend up to 75 per cent LTV at BBR +0.8%.

The firm feel it is now the best time to look at tracker rates, simply because the Bank of England is likely to lower rates in the following months.

Manager at GMAC-RFC, Julie Gaskin commented: “Borrowers who have previously opted for a fixed rate product should look to a tracker mortgages as an attractive alternative. If predictions ring true and the base rate does indeed fall to around the 5% mark, customers on variable rate products could see monthly repayments drop by almost £150.”

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