Redwood Bank has held its buy-to-let rates as rising swap costs, the wholesale rates that underpin fixed-rate pricing, prompt lenders across the market to reprice.
The specialist business bank has also left rates unchanged across its commercial mortgage and residential bridging ranges, while other lenders have increased rates or withdrawn and replaced products in response to higher wholesale funding costs.
Buy-to-let rates held while others reprice
Redwood continues to offer 100% valuation cashback on all new applications across the three ranges, which helps borrowers manage upfront costs as businesses and property investors face increased financial pressures.
The decision to hold buy-to-let rates and its other pricing reflects the bank's confidence in the long-term fundamentals of the commercial property and professional landlord sectors. Its research found earlier this year that landlords are increasingly focusing on investment opportunities closer to home, highlighting the resilience of regional property markets and ongoing demand for specialist lending support.
The commercial mortgage, buy-to-let and residential bridging products remain available through Redwood's intermediary partners.
"The market has seen significant market movement in recent weeks as lenders react to higher swap rates and increased funding costs," said Stuart Davidson, chief commercial officer at Redwood Bank (pictured).
"While many lenders have increased interest rates, we have taken the decision not to pass these recent market movements on to brokers and borrowers and to continue offering 100 per cent valuation cashback across our range.
"We know brokers and borrowers value certainty, particularly during periods of market volatility. Frequent repricing can create challenges for advisers and their clients, which is why we have worked hard to minimise the impact of recent market movements where possible.
"Market conditions remain fluid and we continue to monitor them closely. Alongside competitive pricing, we continue to provide direct access to underwriters, pragmatic lending decisions and the relationship-led approach that our intermediary partners value."
