The lender will also be changing its procuration fee structure stating that due to further pressure from recent financial market activity, it must make adjustments to ensure that this structure remains commercially sustainable and competitive.
The Lehman Brothers-owned company says there will be no criteria or completion fee changes at this time and that its current product range will be removed from its website and sourcing systems by close of business on September 7.
Preferred has not said how much it will be changing its procuration fee to but says that it will provide further information over the next few days,
In an email alert to brokers, head of sales Shaun L’Anson says: “You will be aware that over the last 18 months margin erosion due to fixed rate ’swap’ costs have created an unsustainable pricing level for lenders, and the spread in pricing between near prime and unlimited adverse has reduced significantly.
“During this time, our Procuration Fee structure has remained the same. With further pressure from recent financial market activity, it is now essential that we make adjustments to ensure that this structure remains commercially sustainable, competitive, and offers a balance between good rates for customers and good reward for intermediaries.”
Preferred will be publishing its new product guides on its website from September 1.