Preferred launches stepped fixed rate product

Amanda Jarvis

March 22, 2006

Rates start from 4.99 per cent.

It was designed in response to intermediary feedback showing great demand for the product in the non-conforming marketplace.

Preferred is the first lender to launch a 3 Year Stepped Fixed Rate product range for the non-conforming customer.

Highlights of the 3 Year Stepped Fixed Rate products include:
– Rates starting from 4.99%
– Rates fixed until 1 July 2009
– No extended tie in (subject to 1 month's written notice)
– No remortgage loading across the entire range
– Right to Buy rates from just 5.19%
– Flexible underwriting criteria and stretched adverse criteria
– Popular flexible 'either or'option available on Select Mid and Select Unlimited ranges
– Select Mid range allows 2 months arrears in the last 3 months
– Only last 3 months contractual payments required when remortgaging from a non-conforming lender

Roger Taylor,director of sales & marketing,said:‘Preferred continue to offer a wide choice of products for the whole of the intermediary market.We pride ourselves on our desire to listen to our intermediaries and to act on their comments; the 3 Year Stepped Fixed product came about as a direct result of their feedback and,as such,we ’re sure it will prove to be extremely popular.
Furthermore,the Stepped Fixed Rates reflect Preferred ’s commitment to providing non-conforming customers with the opportunity to improve their financial situation;offering a lower rate in the first year and gradually stepping up over the next two years ’.
In addition,Preferred have also revised their Core Range,cutting rates by up to .20bps and extending their 2 &3 Year Fixed Rates until July 2008 /2009.Discounted Rates now start at just 4.03% and Fixed Rates are available from just 5.49%.; remortgage loadings have been removed across the range.Preferred will
also now accept 110%rental cover on initial pay rate on their 3 Year Fixed Rate Buy to Let range.

These changes build on the new product and underwriting criteria introduced by Preferred in January.

Roger Taylor added:‘Our revised Core Range is more competitive than ever; the products are transparent and
easy to understand.To reflect this,we have simplified our Core Range product guide to feature our Discounted and Fixed Rates in one easy-to-use guide. In addition,our underwriting criteria continues to be the most flexible in the non-conforming sector.’

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