The lender said stress testing had become a “major hurdle” for landlords recently, which was limiting how much they could borrow and making deals harder to place.
The reductions apply to Redwood’s variable, two- and three-year fixed rates.
Redwood Bank has also introduced a tiered pricing structure to improve its offering.
Tom Worbey, senior lending product manager at Redwood Bank, said: “Brokers tell us one of their biggest frustrations is stress rates. By lowering our residential BTL and commercial mortgage stress rates, we’re giving brokers more options and helping landlords achieve the leverage they need.
“Affordability is front of mind in the current market. Landlords are navigating higher costs and tighter yields, and brokers are working harder than ever to structure viable deals.”
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This change comes after Redwood Bank improved affordability for lending against houses in multiple occupation (HMOs).
Dudley BS releases five-year fixes for expat BTL
Dudley Building Society has expanded its expat BTL range with five-year fixes, alongside rate reductions of up to 0.81%.
The new products include an option at 70% loan to value (LTV) with a rate of 5.59%, available on a capital and interest, interest-only or part and part repayment option.
At 80% LTV, the rate is 5.89%.
Both products have a £1,999 arrangement fee and an early repayment charge (ERC) of 4%, 3%, 2% 1% and 1% over the five-year term. Overpayments of up to 10% are permitted each year without a penalty.
The 70% LTV product represents a price cut of 0.81%, down from 6.4%.
Rob Oliver, distribution director at Dudley Building Society, said: “We’ve seen steady demand from brokers placing expat BTL cases, and these new five-year fixed rates are a direct response to that. The rate reductions will help brokers provide better-value options to their clients, while our manual underwriting approach means we can consider cases on their individual merits.
“For expat landlords, the combination of fixed payments and very reasonable product fee plus repayment features can offer both stability and control at a time when managing overseas investments can feel more complex. We’re continuing to build on our BTL range to ensure brokers have practical, competitive options for every type of landlord.”
Recently, the mutual added residential and BTL products to its offering.
