The lender launched the range on 21 January, having cut its rates by up to 0.85 per cent, but sent an e-mail to brokers at 1.35pm on 30 January saying that submissions should be with Preferred by 5pm on 31 January.
It also warned that funds would only be available on a first come, first served basis, meaning that intermediaries who managed to turn round cases in time were not guaranteed to secure the product.
Hugh Nicholls, proprietor at Badbury Berkeley Mortgage Services, commented: “This is quite topical so I couldn’t believe it when it came through. Preferred seems to be using it like a selling point, which surely isn’t ‘Treating Customers Fairly’ (TCF). I just don’t believe mortgages should be sold in a ‘get them while you can’ way. TCF is aimed at brokers, but we need it from lenders.”
The subject of product withdrawal notices has become a hot topic in recent weeks, with advisers insisting that lenders must respect them and arguing that their ability to treat customers fairly is dependent on the behaviour of lenders.
Responding, a spokesperson from Preferred Mortgages, said: “Due to the unprecedented demand, we can confirm that the current product range is being withdrawn from close of business on 31 January. The new range will be available from 1 February.
“When the current mortgage range was launched, it was always our intention that it would only be available for a limited period. We have had to initiate this change sooner than anticipated. We are still giving a 30 calendar day deadline for brokers to get their fully packaged applications to us.”
