Redwood Bank has re-assessed its commercial lending proposition to boost the affordability of its commercial mortgages for experienced professional landlords and small and medium-sized enterprises (SMEs).
These changes have been made following consultations with brokers, and reflect the continued higher interest rate environment.
In addition to boosting affordability, Redwood has also launched a 5-year fixed rate interest-only product, which reverts to capital and interest for the remainder of the mortgage term.
It is also introducing its Alternative Fee option to its 2-year and 3-year fixed rate products for commercial mortgages.
This provides the option to pay a higher arrangement fee in return for a lower interest rate to boost leverage.
Tom Worbey (pictured), Redwood senior lending product manager, said: “At Redwood we specialise in helping SMEs and experienced professional landlords to access the finance they need to invest in, and grow, their property business.
“We offer individually assessed commercial mortgages that allow us to consider each case on its own merits, and our team is experienced in handling complex and specialised lending for SMEs and property landlords.
“We are giving SMEs choice and simplicity with our latest changes. For example, we have simplified our interest-only options by removing loan-to-value (LTV) bands, meaning SMEs can now access an initial interest-only period between one and five years as part of their mortgage term.
“In addition, landlords can benefit from our award-winning Green Cashback Reward, which is available on our commercial mortgages for properties with Energy Performance Certificate ratings of A to C.
“It is our way of providing landlords with a cash injection while contributing to a greener future.”
