Redwood Bank steps up its support to SMEs during challenging economic period

A Letchworth business bank keen to continue its ongoing support for SMEs has launched its first fixed rate mortgages to help businesses navigate the current challenging economic conditions.

Redwood Bank, which recently has achieved profitability for the first time, by continuing to do business through the pandemic and guarantee survival for a number of its customers, is now offering the assurance of consistent monthly payments over two or three years.

Gary Wilkinson, CEO and Co-Founder of the Bank, said: "The time is right to introduce these new products for our customers, who are facing uncertain times.

"We want to be able to continue to support them, and one of the ways we can do that is by taking away the anxiety that goes with rising interest rates."

The Bank, which is celebrating its fifth anniversary this year, played a key role in bolstering British business through pandemic-related difficulties.

"We care about the businesses we work with," Mr Wilkinson explained, adding: "SMEs are a crucial part of the local economy and it's vital they are given the assistance they need to stay afloat during what has been, and is continuing to prove to be, an extremely difficult period.

"With talk of a winter recession, rising interest rates and an increase in the cost of energy, we are able to take away some of the worry by giving businesses the reassurance of stable mortgage payments."

The new fixed rate mortgages will be available over a two- or three-year fixed period. The Loan to Value (LTV) will be up to 75 per cent for secured residential investment and 70 per cent for secured commercial property loans.

"We want to be able to offer further support to SMEs at a time when they need it," said Mr Wilkinson.

:Giving them two or three years of fixed mortgage payments allows them to plan without worrying about what decisions may come from the Bank of England. 

"With so many businesses facing real challenges, we are determined to do everything we can to be right by their side to provide assistance."

For further information, visit www.redwoodbank.co.uk.

Redwood Bank was launched in August 2017, at the time Britain's newest business bank for SMEs and completing its 'mobilisation' phase just over four months after securing its initial banking licence in April 2017. Redwood Bank offers secured SME mortgages for business owners, as well as for experienced commercial and residential property investors. It delivers fast and efficient mortgage decisions to help its business customers seize property opportunities and also offers competitive business savings accounts.Redwood Bank was founded by Jonathan Rowland and Gary Wilkinson.