New buy-to-let lender Redwood Bank is now open for business and is targeting professional portfolio landlords.
It will lend from £50,000 up to £1.5m for landlords buying or remortgaging at up to 70 per cent LTV.
The loans can be fixed from 2 to 25 years, or up to 20 years for HMO properties.
Rental income must be at least 130 per cent of monthly repayments.
Eligible landlords must have two years experience and at least four properties in England, Scotland and Wales.
Redwood Bank is owned by Redwood Financial Partners, a company controlled by Jonathan and David Rowland.
Warrington Borough Council has a 33 per cent stake in RFP.
As part of this, the council’s executive board invested £30m into Redwood as part of the bank’s capital funding.
Letchworth-based Redwood will operate across the country but will focus on Hertfordshire, Bedfordshire and Warrington at first.
Redwood Bank chief executive Gary Wilkinson says: “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.”
Redwood will also lend secured SME mortgages for business owners.