GMAC-RFC explains base rate
GMAC-RFC have rearranged its general and self-cert discount
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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