SPECIALIST business bank is extending its support to businesses looking for longer-term financial stability with the launch of a ‘limited edition’ five-year fixed rate mortgage.
Redwood Bank is adding the new product to its existing two-and three-year fixed rate mortgages that were introduced last year.
Gary Wilkinson, co-founder and CEO, said: “We pride ourselves on supporting British businesses, and at a time when the Bank of England base rate remains high and inflationary pressures are causing further uncertainty, we want to remove some of the stress and anxiety for our customers.”
The five-year product is for residential and commercial investment mortgages, with an LTV up to 75 per cent for secured residential investment and 70 per cent for secured commercial property loans. Five year fixed rates start at 6.99 per cent for residential and 8.75 per cent for commercial.
Customers will be able to choose between capital and interest, up to 30 years for residential and 25 years for commercial properties, or interest only, up to 30 years for residential and up to 10 years for commercial properties.
Gary said: “Businesses have had to deal with so much over the past few years, so they really need a period of stability to be able to regroup. We want to be able to help ease the pressure on them and show our ongoing commitment to British business.
“These new five-year fixed rates will offer certainty on future payments so businesses can plan accordingly. Redwood’s bespoke pricing allows a tailored proposition for our customers, which will also provide them with a competitive reversion rate when the fixed rate period ends.”
Redwood Bank celebrated its fifth anniversary in 2022, the same year it announced its first profit, for the year-ended 31 December 2021.