Preferred Mortgages has today announced a series of interest rate rises on its sub-prime range of mortgages, with an average rise of 0.65%.
Preferred is the latest lender to adjust its pricing structure to help cope with worries triggered by problems in the US sub-prime market. Last week, Northern Rock announced it would raise its rates by up to 1.25%.
A spokesperson for Preferred says criteria and completion fees will not be changing at present. db Mortgages has made several changes to their sub-prime criteria, such as not allowing self-cert and changing default limitations, rather than make a significant rate hike.
The new range will be available from 10 September, while previous rates will no longer be available from 7 September. Packaged business applications will continue to be accepted until 14 September.
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