Starting at 4.95 per cent with 75 per cent LTV, GMAC-RFC’s chan-ged self-cert option includes a £545 application fee with early repay-ment charges dropping from 4 to 3 per cent until 2008. Income multiples operate up to 4.5 plus 1 for single applicants and 3.75 for joint applications.
Since its introduction to the market GMAC-RFC has reported applications for its self-cert range have doubled within two weeks.
Jeff Knight, head of marketing services at GMAC-RFC, was certain that self-cert would become more popular. “I know the self-cert market will continue to grow in the future but I don’t think it has doubled in less than a fortnight.
“So it is clear we are increasing our share in this important sector. Our current two-year fixed rate is proving to be very popular. Add to that our fast turnaround times and online system and you can see why intermediaries like GMAC-RFC so much.”
Peter O’Donovan, mortgage manager at Bestinvest, agreed that self-certs were becoming more attractive to clients. “The self-cert market seems to be settling down and I am sure that it will continue to grow.
“Last year a few lenders shied away from offering self-cert but the sector appears to be coming back and expanding. As long as people remain sensible and quote sensibly then self-cert mortgages are a good proposition.”
O’Donovan went on to add: “Lenders have realised there are always going to be small problems with self-cert deals and after last year’s slow market have decided to come back.”
l Mortgage Introducer revealed earlier this month that the FSA is in the final stages of an investigation into the self-cert market and the advice given by brokers in this sector. Findings from the review are expected to be published early next month.
