New fixed rates are further proof of our commitments to customers as winter recession looms

We appreciate the difficulties that our customers are facing and it is up to us to try to make life easier for them. History shows us that the economy operates in a cyclical manner; sometimes the cycles are long, sometimes short. Sometimes the peaks are high, and the troughs are low. However, the UK has also historically proven to be resilient, and my belief is that this will continue to be the case this time around.

It’s clear, though, that on the back of Brexit, COVID-19 and the current inflation/supply chain-led crisis, that there will be some short-term pain for UK businesses and consumers. The severity of that pain will depend on how much we talk ourselves into a negative spiral vs focusing on the things we can do to provide support where it’s most needed.

We proved during the pandemic that when our clients are struggling, we will do what we can to help. High street banks were on the backfoot during that period, but we provided the support that was needed, to keep businesses afloat and protect our clients’ interests.

This is one of the reasons why Redwood Bank has now launched its first fixed rate mortgages. Experts are predicting significant rises in interest rates over the coming months. That move could threaten the stability and security of a number of businesses. 

A jump in interest rates, combined with energy costs and other rising prices could push businesses to the edge. We want to be able to help. The new products will provide businesses with reassurance around their mortgage payments. They will be able to make plans, knowing what their monthly outgoing will be without living in a state of anxiety around what the Bank of England is going to announce next.

How we respond during the economic downturn over the next 12 to 24 months is the biggest issue facing the banking sector right now. It’s a time to offer support and assistance where we can while being mindful of appropriate risks, but not withdrawing when our customers need help the most. It’s going to be a very fine balance. 

And then we have to consider the introduction of a new Prime Minister. I think the challenges faced by Rishi Sunak, specifically the energy crisis, the impact of the war in Ukraine and the rapidly rising levels of inflation and consequently bank base rate, will mean that he will need to seek support from a number of different sectors, including financial services, in order to help counter the rising cost of living for businesses and people in the UK. 

I’m hoping that there will be some relaxation of regulations to help challenger banks continue to support SMEs in a downturn as I think we will see high street lenders reduce their appetites again given the challenges they will face with their existing books.

Banks have to be part of the solution, given the current challenges faced globally, not just in the UK. There’s a real opportunity for banks and financial services providers to give support and help to businesses and personal customers. I think the banks that embrace the need to support, while maintaining good risk disciplines, will see significant enhancements to their reputations.

At Redwood Bank, we will keep very focused on delivering what our customers need, ensuring that we build on what we are good at, enhancing the technology and harnessing the skills of our people in order to become brilliant at what we do best. We want to be recognised as the Bank that cares. Our new two- and three-year fixed rate mortgages are a further sign that our customers come first.

Keeping a weather eye on the competition is important but what’s really vital is ensuring that we play to our strengths and deliver on customer expectations.

No one can be sure how the next few months will play out in terms of the economy, but Redwood Bank’s track record through COVID-19 has shown that we have the ability to weather the storm, no matter how rough the seas become.