Redwood Bank has entered the bridging market with a new residential buy-to-let proposition as it looks to support property investors across a wider part of their borrowing lifecycle.
The bank has launched two products covering standard residential landlord bridging and refurbishment bridging, with loans available for six, nine or 12 months and the potential for extensions of up to a further 12 months.
The move comes as bridging continues to play an important role for property investors. The latest Bridging Trends data shows investment purchases accounted for 18% of bridging transactions during the second quarter of 2026, joint with preventing a chain break as the most common reason for borrowing.
Auction finance also increased from 11% of transactions in the first quarter to 14% in Q2, while the proportion of heavy refurbishment bridging rose from 6% to 10%.
BRIDGE-TO-TERM OPTION
Redwood’s standard bridging product is aimed at residential landlord purchases, development exits and refinancing, while its refurbishment facility is designed for investors carrying out non-structural improvements to enhance a property’s value or make it more suitable for longer-term finance.
Both can be used on a bridge-to-term or bridge-to-exit basis.
The lender’s published criteria show standard residential buy-to-let bridging is available from £100,000 to £2m, with rates starting from 0.70% a month and lending up to 75% LTV inclusive of fees and rolled interest.
Refurbishment bridging starts from 0.79% a month, with lending subject to the lower of up to 80% day-one LTV or 75% of the post-works value, including rolled interest and fees.
The proposition includes residential and qualifying semi-commercial properties, HMOs, new builds and Grade II listed buildings.
Redwood says direct access to its underwriting team will form part of the proposition, with customers able to transition onto the bank’s longer-term buy-to-let products where appropriate.
‘NATURAL NEXT STEP’
Stuart Davidson (man picture), chief commercial officer at Redwood Bank, says: “Bridging finance is a natural next step for Redwood as we continue to grow our lending propositions. We know our customers and brokers value speed, clarity and certainty, particularly when dealing with time-sensitive property transactions.
“This launch allows us to further support residential landlords, whether they are acquiring a property, carrying out improvements or managing a transition between funding arrangements.
“Importantly, it also strengthens our ability to build long-term relationships by supporting customers as their property portfolios develop and grow.”
The launch comes as the average time taken to complete a bridge fell from 53 days in Q1 to 46 days in Q2, according to Bridging Trends, while the average loan term remained at 12 months and average LTV increased from 52% to 55%.
Redwood is also offering 100% valuation cashback on its residential investment mortgages, including bridging loans.
Investors using refurbishment finance to improve the energy efficiency of a property could also qualify for Redwood’s Green Reward cashback if they subsequently refinance onto an eligible Redwood term product.
