Redwood Bank has reduced its interest rates on loans up to 60% LTV and increased its maximum portfolio loan to £10m across residential investment and commercial lending.
For residential investment buy-to-let and semi-commercial mortgages, interest rates now start from 4.84% for a two-year fix up to 50% LTV with a 5% fee, reduced from 5.59%.
For commercial mortgages, rates now start from 6.34% fixed for two years at 50% LTV with a 5% fee, down from 7.09%.
Alongside these pricing changes, Redwood has increased its maximum portfolio loan size from £6m to £10m across residential investment and commercial products and extended commercial interest-only terms to 20 years.
Single asset limits have also risen significantly.
Residential investment and semi-commercial limits have increased from £3m to £6.5m up to 65% LTV and from £2m to £4m over 65% LTV.
For commercial investment, limits have increased from £3m to £6.5m up to 60% LTV and to £4m over 60% LTV.
In addition, commercial loan broker fees have increased from 1% to 1.50%, aligning them with Redwood’s residential investment and semi-commercial products.
Stuart Davidson, chief commercial officer at Redwood, said: “This is a deliberate and exciting step forward in our growth plans. Over the past year we have made major improvements to strengthen our proposition and resulting broker and customer experiences.
“We updated our debt service coverage approach to use gross rent, reduced stress rates on two and three-year fixes and extended interest-only terms on residential products to 30 years. We simplified pricing with clear loan to value and credit quality bands and launched our new credit-backed decision in principle process for residential investment mortgages, giving brokers fast and dependable decisions.
“Alongside this, we invested heavily in our technology, upgrading systems, automating key processes and building the foundations for our broker portal, supported by the launch of our online mortgage calculator.
“With this platform now in place, we are ready for our next phase of growth by launching a 20-year interest-only term for commercial deals, a maximum single asset size of £6.5 million across all products, portfolio limits of £10 million, and an increased 1.5% procuration fee on all commercial transactions. These changes underline our commitment to helping landlords grow sustainably while navigating a changing market with confidence.”
Tom Worbey, senior product manager, added: “We recognise the importance of supporting landlords who maintain strong equity positions in their portfolios. By reducing rates on our lower LTV commercial and residential investment mortgage products, we are rewarding lower risk customers with more competitive pricing that strengthens cash flow, supports long-term investment plans and delivers greater financial resilience.”
