GMAC offers 3.95 per cent fix

Gina Collman, head of corporate communications at GMAC Residential Funding, said: "Flexibility is key for many homeowners and this mortgage offers the opportunity to pay off up to 25% of the capital repayment each year with no penalties attached. To ensure a faster turnaround no income references are required for the borrower, this applies to loans up to 90% LTV and under £200,000 where an acceptable credit score pass is achieved."

Two year fixed rates are popular with borrowers who are looking for a combination of an attractive rate and security of payment, so they can manage their outgoings and budget for repayments. With GMAC Residential Funding's fixed rate there is also the comfort of knowing that the mortgage allows the flexibility to reduce the balance during the fixed rate period. With no redemption charge after the fixed rate period, borrowers can also reassess their options when the fixed rate ends.