Landlords are set to gain an affordability boost after Redwood Bank reduced its stressed interest rates across residential buy-to-let and commercial mortgage products.

The move follows a series of earlier enhancements aimed at improving borrowing power for small and medium-sized enterprises and landlords.

Stress testing has become one of the biggest barriers to borrowing in recent years, with elevated interest rates restricting the amount landlords can secure and making deals harder to complete.

Redwood’s decision to lower its variable, two- and three-year fixed stress rates is designed to relieve that pressure and help more applications pass affordability checks.

Tom Worbey (pictured), senior lending product manager at Redwood Bank, said: “Brokers tell us one of their biggest frustrations is stress rates. By lowering our residential buy-to-let and commercial mortgage stress rates, we’re giving brokers more options and helping landlords achieve the leverage they need.

“Affordability is front of mind in the current market. Landlords are navigating higher costs and tighter yields, and brokers are working harder than ever to structure viable deals.”

The update applies across Redwood’s residential buy-to-let and commercial ranges, with affordability assessments now incorporating the revised stress rates.

Redwood said the change should enable more variable, two- and three-year fixed rate deals to proceed—segments of the market that have faced particular pressure in recent months.

The specialist business bank has also introduced a new tiered pricing structure as part of its ongoing efforts to enhance flexibility and support for brokers and their clients.