"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,"
- Tom Worbey - Redwood Bank
Redwood Bank has announced that it has reduced stress rates on its residential buy-to-let (BTL) and commercial mortgage products.
The move builds on earlier improvements introduced this year aimed at strengthening borrowing power for SME borrowers and landlords.
Stress testing has increasingly constrained landlords in recent years, with higher interest rates limiting borrowing capacity and making deals harder to complete. Redwood’s reduction across variable, two- and three-year fixed rates is designed to ease that pressure, improve affordability, and help more cases progress.
Broker support and affordability focus
“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,” said Tom Worbey, senior lending product manager at Redwood Bank.
“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,” he added.
The update applies across Redwood’s residential BTL and commercial mortgage ranges, with affordability calculations now reflecting the reduced stress rates.
The Bank expects the change to enable brokers to place more variable, two- and three-year fixed-rate deals, which have been particularly constrained in recent months.
