The new deals, which are available to business borrowers, have two- or three-year terms. There is a maximum loan-to-value (LTV) of 75 per cent for secured residential investment, or 70 per cent for secured commercial property loans.
The mortgages are available on both a repayment and interest-only basis, with terms of up to 10 years for commercial properties and up to 30 years for residential.
The bank, which has offices in Letchworth, Hertfordshire, and Warrington, Cheshire, said that the interest and reversion rates on offer for its mortgages will be tailored to individual borrowers.
Gary Wilkinson (pictured), CEO and co-founder of Redwood Bank, said that the time was right to introduce these new deals, noting it wanted to support business customers with the certainty that comes from a fixed rate.
He continued: “We want to be able to offer further support to SMEs at a time when they need it. Giving them two or three years of fixed mortgage payments allows them to plan without worrying about what decisions may come from the Bank of England.
“With so many businesses facing real challenges, we are determined to do everything we can to be right by their side to provide assistance.”
At the end of July, Mortgage Solutions reported that the bank had made a pre-tax operating profit of £2.2m in the year to December 2021, up from a loss of £1.7m in 2020. This is the first profit reported by the bank.
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