Redwood Bank has passed on the full Bank of England Base Rate reduction of 0.5% to its existing lending products.
The challenger bank’s decision was taken off the back of the Bank of England’s decision to cut the base rate from 0.75% to 0.25% on Tuesday in an emergency response to the “economic shock” of the coronavirus outbreak.
Redwood Bank’s products, which include individually assessed mortgages for business owners and professional landlords, are offered to owner-occupied businesses, as well as to experienced commercial and residential property investors.
Gary Wilkinson, CEO and co-founder of Redwood Bank, commented: “Yesterday’s Bank of England Base Rate announcement is positive news for the UK economy, as it’s going to help tackle the economic implications of coronavirus.
“Almost all of our mortgage products are bespoke to meet the individual needs of clients and have variable rates linked to Base Rate. We have therefore decided to cut our mortgage rates by 0.5%, which we believe our customers will hugely benefit from.”