Specialist lender Redwood Bank has made changes to its commercial lending proposition to improve affordability for professional landlords and SMEs.
Redwood Bank said these changes were made following consultations with brokers and reflected the continued higher interest rate environment.
The lender has also introduced a five-year fixed interest-only product, which reverts to capital and interest payments for the remainder of the mortgage term.
Further, it has launched an alternative fee option to its two- and three-year fixed rate options for commercial mortgages. This will enable borrowers to pay a higher arrangement fee in return for a lower interest rate.
Tom Worbey (pictured), senior lending product manager at Redwood Bank, said: “At Redwood, we specialise in helping SMEs and experienced professional landlords to access the finance they need to invest in, and grow, their property business.
“We offer individually assessed commercial mortgages that allow us to consider each case on its own merits, and our team is experienced in handling complex and specialised lending for SMEs and property landlords.”
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He added: “We are giving SMEs choice and simplicity with our latest changes. For example, we have simplified our interest-only options by removing LTV bands, meaning SMEs can now access an initial interest-only period between one and five years as part of their mortgage term.
“In addition, landlords can benefit from our award-winning Green Cashback Reward, which is available on our commercial mortgages for properties with Energy Performance Certificate ratings of A to C. It is our way of providing landlords with a cash injection while contributing to a greener future.”