Welcome to Redwood Bank for intermediaries

The Redwood basics

• Borrower type: individuals, sole traders, partnerships, limited cos, LLPs and Trusts

• Loan size: from £250,000 up to £6m (up to £3m per single asset)

• Term: from 2 to 30 years C&I, and IO with committed fixed rate or variable rate

• Interest type: IO for up to 30 years on residential BTL investment and semi-commercial and maximum 5 years for commercial

• Max LTV: 76.5% including fee (against valuation not the purchase price)

• Proc fee: 1.5% residential BTL and 1% commercial

• Interest Rates: Residential variable rates from 3.04% + Base Rate, fixed rates from 5.59% and commercial variable rates from 4.04% + Base Rate, fixed rates from 7.09% 

• Cashback: Up to 0.50% Green Reward Cashback for EPC-rated properties (A–C)

• Affordability: debt service coverage ratios start from 125% for residential and 130% for commercial and stress rates of Pay Rate for 5-year fixed rates and Pay Rate +1% for 2- and 3-year fixed rates and variable rates

Expert decisions

Our lending team uses their expertise to help assess each case and look at the full picture. We understand the detail, whether this is layered company structures, or portfolio complexity.

• We consider SIPP and Trust borrowers

• We consider specialist tenancy arrangements, such as residential property let on a corporate let with lease arrangements, and not just traditional ASTs

• We consider deals for serviced accommodation, Grade 2 Listed buildings and new builds

• Borrower age: over 85 accepted if borrowing jointly with a borrower who is within age limits (21 to 85) at end of loan term

• Investment valuations on HMOs (where appropriate)

• Semi-commercial deals assessed on basis of rental income, not floorspace

• 10% overpayments per annum allowed

• No facility fee

• Maximum 25% PG for the ultimate director/s – except for SIPP/SAAS/Trust or if a corporate guarantee is more appropriate

• No limit to maximum number of properties in a single deal, ideal for portfolio landlords

Residential investment mortgages - buy-to-let and HMOs

• Rates from 5.59%

• Up to 76.5% loan to value including fee

• Mortgages from £250,000 to £6.0m 

• Single asset maximum loan of £3m up to 65% LTV and £2m for over 65% LTV

• Fixed terms from 2-30 years 

• Interest only or capital and interest repayment

• 2, 3 and 5 year fixed rates available

• Option for higher fee and lower interest rates to support affordability

• Mixed-use properties considered.

• Green Reward Cashback offer of up to 0.50% available on properties with EPC ratings of A-C

Customer criteria

• Evidence of being an experienced property investor

• Lending to UK-based entities (sole-trader, partnership or limited company), trusts, individuals and expats

• Gross rental income should represent at least 125% of monthly repayments for buy-to-let and small HMO's/MUFB's

• Gross rental income should represent at least 145% of monthly repayments for large HMO's/MUFB's

• Maximum age 85 at the end of the loan term

Semi-commercial mortgages - buy-to-let and HMOs

• Mixed-use properties where over 50% and up to 80% of rental income is derived from buy-to-let or small HMO's/MUFB's

• Rates from 5.59%

• Up to 76.5% loan to value including fee

• Mortgages from £250,000 to £6.0m

• Fixed terms from 2-30 years

• Interest only or capital and interest repayment

• 2, 3 and 5 year fixed rates available

• Option for higher fee and lower interest rates to support affordability

• Mixed-use properties considered.

• Green Reward Cashback offer of up to 0.50% available on properties with EPC ratings of A-C.

Customer criteria

• Evidence of being an experienced property investor

• Lending to UK-based entities (limited companies, sole traders, partnerships, and SIPP and SSAS schemes), trusts, individuals and expats

• Rental income should represent at least 130% of monthly repayments

• Maximum age 85 at the end of the loan term

Commercial mortgages - owner occupier and professional landlords

• Rates from 7.09%

• Up to 71.4% loan to value including fee

• Mortgages from £250,000 to £6.0m

• Fixed terms up to 30 years 

• Interest only options up to 5 years available, as part of a capital and interest mortgage repayment term

• 2, 3 and 5 year fixed rates available

• Option for higher fee and lower rates to support affordability

• Green Reward Cashback offer of up to 0.50% available on properties with EPC ratings of A-C.

Customer criteria

• Evidence of being an experienced property investor if a professional landlord

• Lending to UK-based entities (limited companies, sole traders, partnerships, and SIPP and SSAS schemes), trusts, individuals and expats

• Gross rental income should represent at least 130% of monthly repayments (professional landlord)

• Adjusted EBITDA should represent at least 130% of monthly repayments (commercial owner occupier)

• Maximum age 75 (owner occupier) or 85 (professional landlord) at the end of the loan term

Lending documents