Redwood updates commercial mortgage proposition to boost leverage

In addition, the bank is launching a new five-year fixed-rate interest-only product, which reverts to capital and interest for the remainder of the commercial mortgage term.

It is also introducing its alternative fee option to its two- and three-year fixed-rate commercial mortgage offering.

This provides the option to pay a higher arrangement fee in return for a lower interest rate to boost leverage.

These changes have been made following consultations with brokers.

Redwood senior lending product manager, Tom Worbey (pictured above), 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 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 green cashback reward, which is available on our commercial mortgages for properties with EPC ratings of A to C.

“It is our way of providing landlords with a cash injection while contributing to a greener future.”