GMAC-RFC has unveiled a new buy-to-let tracker that it predicts will force other lenders to respond to or risk losing market share.

The lender has launched the product in response to the widening gap between purchase prices and achievable rents, which GMAC-RFC says is increasingly becoming a problem for landlords.

The buy-to-let product requires 27% less rental income enabling the landlord to purchase or re-mortgage more properties.

Jeff Knight, director of marketing at GMAC-RFC says: “The new buy-to-let product offers a solution to the property investor in the current environment where mortgage rates may rise but rental rates may not. This product has an extremely low rental requirement.”

The product is a tracker at the Bank of England Base rate minus 0.01% for three years then it then reverts to Base rate plus 0.99% for the remainder of the term. It is available for purchase or re-mortgage and has a maximum LTV of 85%. It has a five-year early repayment charge of 5%, 4%, 3%, 2%, or 2% and there is an arrangement fee of £1,495.