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An award-winning specialist business bank is making changes to its product criteria to boost the affordability of its residential investment buy-to-let mortgages for professional landlords.
In response to the continued higher interest rate environment and following consultations with leading brokers, Redwood Bank has reassessed its proposition. These new changes increase the leverage available to landlords, helping support their future growth.
The changes made by the Bank have been designed to offer improved affordability with better leverage for landlords, helping them to purchase new properties or to refinance their existing properties and/or release equity for growing their portfolios.
Redwood’s Senior Lending Product Manager Tom Worbey said: “Professional landlords have handled many challenges in recent times, including elevated interest rates that have eroded their returns and reduced their leverage, notably in the South where property yields are lower.
“At Redwood we support experienced property landlords and know that many of them are now approaching the end of deals held on historically low rates. We knew we needed to act to help support them to achieve the leverage they need in this current interest rate environment in order to continue to invest in and grow their property portfolios.
“We started this last year by introducing our Alternative Fee product, offering a higher arrangement fee in return for a lower interest rate. Now, in consultation with our brokers, we have identified further initiatives to help landlords secure the funding they need to grow. This includes removing previously applied automatic cost deductions in our affordability calculations.
Further details of the changes to improve affordability and simplify the Redwood offering are shown on their website at www.redwoodbank.co.uk/intermediaries.
Mortgages are secured on a borrower’s property. Borrowers could lose their property if they do not keep up payments on their mortgage.
For further information about Redwood Bank, visit www.redwoodbank.co.uk.