Redwood Bank has helped a landlord looking to remortgage his property to repay an existing lender.
The use of manual underwriting was central to the success of the case.
The business bank, which is based in Letchworth and Warrington, was able to offer the customer a residential investment mortgage when he was having difficulty securing a fair rate on the remortgage of a mixed-use property consisting of two flats above a convenience store.
Coreco Specialist Finance Limited approached Redwood Bank on behalf of the applicant to explore the options available.
COST EFFICIENCY
Peter Davies of Coreco Specialist Finance said: “My colleague recommended Redwood to me as a specialist lender for semi-commercial deals. Mark [Dobson] and the underwriting team worked with us to find the best solution for our clients.
“In this case they helped a growing firm to release capital in a cost-efficient way. Their manual underwriting allowed us to agree a deal with a combination of tenancy types. Our clients are delighted with this approach and we look forward to continuing the relationship with Redwood to support them and future clients.”
Redwood’s manual underwriting team were able to review the lease agreements and the source of rental income to offer terms as a residential investment mortgage. This provided the customer with greater value.
The bank was able to offer a more competitive interest rate on a five-year fixed term, interest-only for 29 years. The customer faced lower monthly repayments, which in turn supported his business margins, and greater affordability, to release the capital required to fund future investments.
“Our approach helps landlords to maximise their affordability to release the capital they need to grow and to manage their margins with longer interest-only terms and access to residential rates on mixed asset types.”
Mark Dobson, Redwood’s head of business development (South & London), said: “Redwood consistently supports semi-commercial deals. We help support property investors to release capital allowing them funds to invest in other assets.
“Our approach helps landlords to maximise their affordability to release the capital they need to grow and to manage their margins with longer interest-only terms and access to residential rates on mixed asset types.
“It was great to work with Peter and the team to see this case through to completion within the timescales as dictated by the customer.”
