Redwood Bank has kept pricing unchanged across its commercial mortgage and residential bridging ranges despite higher swap rates putting pressure on wholesale funding costs.
The specialist business bank said its commercial and bridging rates would remain unchanged after a period in which other lenders have responded to funding market movements by repricing or replacing products.
Redwood is also continuing to provide 100% valuation cashback on new applications across both ranges, alongside its residential investment mortgage offering.
The bank said the decision reflected its confidence in the longer-term fundamentals of the commercial property market, while giving brokers and borrowers greater certainty as funding conditions remain unsettled.
PRICING HELD ACROSS SPECIALIST RANGES
Stuart Davidson, chief commercial officer at Redwood Bank, says: “The market has seen significant market movement in recent weeks as lenders react to higher swap rates and increased funding costs.
“While many lenders have increased interest rates, we have taken the decision not to pass these recent market movements on to brokers and borrowers and to continue offering 100% valuation cashback across our range.
“We know brokers and borrowers value certainty, particularly during periods of market volatility. Frequent repricing can create challenges for advisers and their clients, which is why we have worked hard to minimise the impact of recent market movements where possible.
“Market conditions remain fluid and we continue to monitor them closely. Alongside competitive pricing, we continue to provide direct access to underwriters, pragmatic lending decisions and the relationship-led approach that our intermediary partners value.”
Redwood has also held rates across its buy-to-let range. Its commercial mortgage, residential bridging and buy-to-let products continue to be distributed through intermediary partners.
