Redwood Bank has kept its buy-to-let mortgage rates unchanged despite rising swap costs prompting repricing elsewhere in the lending market.
The specialist bank has also retained its offer of 100% valuation cashback on new residential investment mortgage applications, as it seeks to provide professional landlords and brokers with greater certainty during a period of changing funding costs.
Redwood’s decision comes as a number of lenders have increased rates or withdrawn and replaced products in response to movements in wholesale markets.
The bank said it remained confident in the longer-term prospects for the professional landlord sector. Research published by Redwood earlier this year found landlords were increasingly looking for investment opportunities closer to home, which it said pointed to continuing demand across regional property markets.
Its commercial mortgage and residential bridging ranges have also escaped repricing, with the 100% valuation cashback offer remaining available on new applications across all three areas of lending.
Stuart Davidson (pictured), chief commercial officer at Redwood Bank, said: “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’s buy-to-let, commercial mortgage and residential bridging products remain available through intermediary partners.
