We recognize that two-year fixed rates still remain the most popular so we know the reductions will be welcomed, said Julie Gaskin, corporate relations manager for GMAC-RFC. With the new loan to value (LTV) break, more people will benefit from a competitive rate at the top end rather than having to pay a slightly higher interest rate.

After receiving positive responses to its ‘low fix’ products, the new two-year ‘low fix’ is offered at 5.59% at 85% LTV compared to 5.89% for its core range product. Furthermore, GMAC-RFC has also reduced the buy-to-let products between 20 to 35 basis points but still offers the choice of rental incomes starting from 100% of payrate with a competitive interest rate at 5.24%.

Moreover, the lender has also dropped its fixed rates even further by an additional 20 basis points on its near prime and light range.

Julie Gaskin added: We have listened to what our brokers have had to say and recognize that there are distinct regional differences and so therefore we need to be able to offer a wider choice as we know, one shoe certainly does not fit all.