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When Redwood Bank completed its first deal through a new loan processing platform, it marked an important step forward in the Bank’s ongoing investment in technology and broker experience.
The milestone transaction involved the refinance of a portfolio of Scottish properties owned by AK Properties, valued at £1,385,970. By combining the efficiency of the platform with Redwood’s pragmatic underwriting approach, the Bank was able to move quickly while maintaining the certainty brokers and borrowers rely on.
Despite strong competition from other lenders, Redwood secured the deal and completed the transaction in just over a month – demonstrating how technology and specialist expertise can work together to deliver faster, more efficient outcomes.
THE SITUATION
AK Properties required funding to refinance a group of new-build properties in Scotland, an area not all UK lenders support. The transaction involved an agreed undervalue purchase arrangement in return for a speedy sale and required a lender that could assess the full picture, respond quickly to queries and take a practical view where needed.
The initial enquiry came in through long-standing broker partner DMK Finance. Although Redwood’s pricing and structure were competitive, the deal was far from guaranteed with strong competition from other lenders. A swift response and clear terms ultimately secured the transaction.
Working closely with Donna Kerr, managing director at DMK Finance, and Graham Reid, Director of DMK, Redwood guided the transaction through underwriting and into completion, using the digital platform to push through the second phase of delivery.
THE SOLUTION
Redwood approved a loan of £1,009,800 at 72.85 per cent LTV on a long-term interest only loan, committed for 30 years with the first five years fixed.
Due to the property’s EPC rating, Redwood’s Green Reward Cashback was paid directly to the borrower on completion.
The broker initially submitted a DIP application under Redwood’s enhanced process, providing early clarity on the potential structure and allowing the transaction to move forward with confidence.
The full application to completion process took around six weeks – a notable turnaround for a portfolio refinance of this scale.
ENHANCING LENDING
This transaction was the first to complete from application through to drawdown using Redwood’s new loan processing platform.
The platform has been integral in managing cases more efficiently, streamlining workflows and improving processing times, without changing how brokers interact with the Bank.
By digitising key stages of the lending journey behind the scenes, Redwood was able to enhance speed, consistency and transparency throughout the deal.
THE EXPERIENCE
Mark Dobson, Business Development Manager, said: “From the outset, it was clear that speed and pragmatism would win this deal. The client needed a lender that could move quickly, provide clarity early on and take a practical view on a Scottish portfolio – something not every lender is comfortable with. That’s where we were able to stand out.
“This was a brilliant outcome for both the customer and the broker. In a competitive situation, time is everything. By responding quickly and keeping the deal moving, we were able to give the broker and client the confidence to proceed with us.
“It’s fantastic that Redwood is able and willing to support landlords in Scotland such as Aidan and in this case, it’s proven how quickly a purchase can be turned around when there is great collaboration between broker, bank, borrower and partners.
“DMK has been a top broker partner for years and we have a great working relationship up and down the country. Expanding further into Scotland is a key focus for us and completing this deal reinforced our commitment to supporting brokers and clients in the region.”
David Kennedy, Chief Operating Officer at Redwood Bank, said: “Completing our first deal through our new loan processing platform reflects the value of investing in modern, digital operations. By automating key processes, we have improved speed and service without disrupting brokers, giving them faster responses and a smoother experience for their customers.”
Donna Kerr at DMK Finance said: “What we achieved is market leading and one that few funders or brokers could construct. The service that Redwood provided personally is excellent. Aidan at AK Properties is exactly the type of young entrepreneur that we want to get behind, using our expertise to support.”
Aidan King, Director of AK Properties, said: “We required a lender who could understand the nuances of our portfolio and move at speed. Redwood took a commercial view throughout and provided confidence at every stage, with incredible pace and commerciality from underwriters to support.
“I am delighted that Redwood engaged directly to discuss the transaction and risks and supported us throughout. The process was straightforward and the terms give us long-term stability to continue growing our portfolio.”