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Redwood reduces rates and increases loan limits

11 March 2026

Redwood Bank has reduced its interest rates on loans up to 60% LTV as part of a wider set of changes designed to support affordability and give brokers greater flexibility when structuring deals.

It has also increased its maximum portfolio loan to £10m across residential investment and commercial lending and extended commercial interest-only terms to 20 years.

For residential investment BTL and semi-commercial mortgages, interest rates now start from 4.84 per cent for a two-year fixed at up to 50 per cent LTV with a 5 per cent fee, reduced from 5.59 per cent.

For commercial investment mortgages, interest rates now start from 6.34 per cent for a two-year fixed at up to 50 per cent LTV with a 5 per cent fee, down from 7.09 per cent.

Alongside these pricing changes, Redwood has increased its maximum portfolio loan from £6m to £10m across residential investment and commercial products.

Single asset limits have also risen significantly.

For residential investment and semi-commercial:

Up to 65 per cent LTV increasing from £3m to £6.5m
65 per cent or more LTV increasing from £2m to £4m

For commercial investment:

Up to 60 per cent LTV increasing from £3m to £6.5m
60 per cent or more LTV increasing from £2m to £4m

Stuart Davidson, Chief Commercial Officer, said:

“This is a deliberate and exciting step forward in our growth plans. Over the past year we have made major improvements to strengthen our proposition and resulting broker and customer experiences.

“We updated our debt service coverage approach to use gross rent, reduced stress rates on two- and three-year fixes and extended interest-only terms on residential products to 30 years. We simplified pricing with clear loan to value and credit quality bands and launched our new credit-backed decision in principle process for residential investment mortgages, giving brokers fast and dependable decisions.

“Alongside this, we invested heavily in our technology, upgrading systems, automating key processes and building the foundations for our broker portal, supported by the launch of our online mortgage calculator.

“With this platform now in place, we are ready for our next phase of growth by launching a 20-year interest-only term for commercial deals, a maximum single asset size of £6.5 million across all products, portfolio limits of £10 million, and an increased 1.5 per cent procuration fee on all commercial transactions. These changes underline our commitment to helping landlords grow sustainably while navigating a changing market with confidence.”

Tom Worbey, Senior Product Manager (Lending), said:

“We recognise the importance of supporting landlords who maintain strong equity positions in their portfolios. By reducing rates on our lower LTV commercial and residential investment mortgage products, we are rewarding lowerrisk customers with more competitive pricing that strengthens cash flow, supports longterm investment plans and delivers greater financial resilience.”

Commercial loan broker fees have increased from 1 per cent to 1.50 per cent, aligning them with Redwood’s residential investment and semi-commercial products. The change recognises the complexity of commercial cases and reinforces Redwood’s commitment to supporting brokers consistently across all lending lines.

Full details of the updated products, including the latest product guide and mortgage calculator, are available via https://redwoodbank.co.uk/intermediaries.