Redwood Bank has reduced its residential buy-to-let (BTL) and commercial mortgage stressed interest rates, in a bid to further support landlords.
It builds on improvements introduced earlier this year to strengthen borrowing power for SME borrowers and landlords.
Stress testing has become a major hurdle for landlords in recent years, with higher interest rates limiting how much they can borrow and making deals harder to place.
Redwood’s reduction across variable, 2- and 3-year fixed rates has been designed to ease that pressure, improve affordability and help more cases get over the line.
The update applies across Redwood’s residential BTL and commercial mortgage product ranges, with affordability calculations now reflecting the reduced stress rates.
Alongside this change, the specialist business bank has introduced a new tiered pricing structure.
Tom Worbey (pictured), senior lending product manager, said: “Brokers tell us one of their biggest frustrations is stress rates.
“By lowering our residential BTL and commercial mortgage stress rates, we’re giving brokers more options and helping landlords achieve the leverage they need.
“Affordability is front of mind in the current market. Landlords are navigating higher costs and tighter yields, and brokers are working harder than ever to structure viable deals.”
