The lender claims the range, with rates starting at 4.99 per cent, is the first in the sector. It was launched following demand from intermediaries.
The rate depends on a person’s circumstances but they begin in the first year on 4.99 per cent, rising to 5.69 per cent for the second year and 5.99 per cent for the third year.
Roger Taylor, director of sales and marketing at Preferred, said: “We pride ourselves on our desire to listen to our intermediaries and to act on their comments. The three-year stepped fixed product came about as a direct result of their feedback and we are 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 by offering a lower rate in the first-year and gradually stepping up over the next two years.”
The range includes no extended tie-ins – subject to one-month’s written notice, no remortgage loading and flexible underwriting and stretched adverse criteria.
Also included in the range is a three-year stepped fixed right-to-buy product, with rates starting from 5.19 per cent.
Michael Brill, director of Baronworth Investment Services, said: “It’s very difficult to compare companies as they have different ratings when it comes to judging near-prime. The three-year is fairly average and there are better products out there. However, on a stepped product, I would always recommend a two-year deal as the rate doesn’t shoot up so much and it’s better to lock in for the shorter time.”
