Redwood Bank, a new business lender, is officially up and running after completing its mobilisation phase yesterday, having already secured its initial banking licence earlier in the year in April.
The lender, which is owned by Redwood Financial Partners (RFP), a company controlled by Jonathan and David Rowland, with Warrington Borough Council possessing a 33% stake, is now targeting professional portfolio landlords.
The lender, which has a 100% cloud-based infrastructure, offers mortgages for business owners, as well as for commercial and residential property owners, and will lend from £50,000 up to £1.5m for landlords buying or remortgaging at up to 70% LTV.
The loans can be fixed from two to 25 years, or up to 20 years for HMO properties, but rental income must be at least 130% of monthly repayments, while eligible landlords must have minimum two years experience and at least four properties in England, Scotland and Wales.
Gary Wilkinson, co-founder and chief executive of Redwood Bank, commented: “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.”