Redwood Bank holds interest rates as lenders respond to rising swap costs
Redwood Bank is backing professional landlords and SMEs through a period of market uncertainty by holding its interest rates as rising swap costs prompt lenders across the market to reprice.
While a number of lenders have increased rates or withdrawn and replaced products in response to higher wholesale funding costs, Redwood has kept rates unchanged across its commercial mortgage, residential investment (buy-to-let) mortgage and residential bridging ranges.
The specialist business bank is also continuing to offer 100% valuation cashback on all new applications across the three ranges, helping borrowers manage upfront costs at a time when businesses and property investors are facing increased financial pressures.
The decision to hold firm reflects Redwood’s continued confidence in the long-term fundamentals of the commercial property and professional landlord sectors. Earlier this year, the Bank’s research found that landlords are increasingly focusing on investment opportunities closer to home, highlighting the resilience of regional property markets and the ongoing demand for specialist lending support.
Stuart Davidson, chief commercial officer at Redwood Bank, said: “The market has seen significant market movement in recent weeks as lenders react to higher swap rates and increased funding costs. While many lenders have increased interest rates, we have taken the decision not to pass these recent market movements on to brokers and borrowers and to continue offering 100 per cent valuation cashback across our range.
“We know brokers and borrowers value certainty, particularly during periods of market volatility. Frequent repricing can create challenges for advisers and their clients, which is why we have worked hard to minimise the impact of recent market movements where possible.
“Market conditions remain fluid and we continue to monitor them closely. Alongside competitive pricing, we continue to provide direct access to underwriters, pragmatic lending decisions and the relationship-led approach that our intermediary partners value.”