A new business lender is now officially in the market having completed its mobilisation phase yesterday.
Redwood Bank is now up and running, having obtained its primary banking licence in April this year.
The lender, owned by Redwood Financial Partners (RFP) is targeting professional portfolio landlords.
Redwood Bank has a 100% cloud-based infrastructure and offers mortgages for business owners, alongside commercial and residential property owners. It is to lend from £50,000 up to £1.5m for landlords either buying or remortgaging, all up to 70% LTV.
These loans can be fixed from 2 to 25 years, or up to 20 years for HMO properties. However, rental income must be at least 130% of monthly repayments, as the lender prepares for tighter lending rules to come into force next month.
Eligible landlords must have the minimum two years experience and at least four properties in England, Scotland or Wales.
Gary Wilkinson, co-founder and Chief Executive of Redwood Bank, observed: ‘We are delighted to be open for business so soon following the issuing of our initial banking licence. We aim to offer a real alternative for small and medium sized organisations, providing them with simple transparent loans and savings accounts, great service and a promise that our money is being invested into British businesses and our local communities.’
‘As many traditional banks are hampered by poor lending practices from their past and their legacy systems, we are perfectly positioned to help British SMEs take advantage of property opportunities by offering a highly-tailored service for clients that is built around our very experienced regional managers.’