Redwood Bank has made changes to its residential investment buy-to-let (BTL) mortgage criteria to help professional landlords with affordability.
The move comes after consultations with brokers and aims to increase leverage for landlords, supporting their plans to buy new properties, refinance, or release equity for portfolio growth.
Tom Worbey (pictured), senior lending product manager at Redwood, said: “Professional landlords have handled many challenges in recent times, including elevated interest rates that have eroded their returns and reduced their leverage, notably in the South where property yields are lower.
“At Redwood we support experienced property landlords and know that many of them are now approaching the end of deals held on historically low rates.
“We knew we needed to act to help support them to achieve the leverage they need in this current interest rate environment in order to continue to invest in and grow their property portfolios.”
Worbey added: “We started this last year by introducing our Alternative Fee product, offering a higher arrangement fee in return for a lower interest rate.
“Now, in consultation with our brokers, we have identified further initiatives to help landlords secure the funding they need to grow.
“This includes removing previously applied automatic cost deductions in our affordability calculations.”
