GMAC withdraws its Merc.

Financial Adviser, September, 2007

GMAC-RFC has withdrawn its "revolutionary" Merc mortgage which it admits has not been as popular as anticipated.

The sub-prime Mainstream rate, Extended criteria, Redemption swap, Creative solution loan was launched in April and plugged as the first product to feature a redemption/rate swap.

This means that if the Bank of England base rate increased by 25 basis points, the redemption rate would decrease by the same amount.

Jeff Knight, director of marketing for GMAC-RFC, said that pulling the sub-prime range offered an "opportunity to trim the range in order to make it better."

Mr Knight denied that the decision to pull the product was prompted by the credit crunch and sub-prime problems in the US.