A bank claims that property investors struggling with rising costs and tighter margins are being given a boost to help unlock funding in a high-cost market.  

Redwood Bank says the change comes at a crucial time in the South of England in particular where rising costs and tighter yields have limited borrowing potential.

A bank spokesperson says: “This is exactly the kind of market intervention that landlords need right now. My team in the South have already seen the benefits for our brokers and borrowers with notable increases in LTVs available. It’s a game-changer for landlords wanting to progress deals and fund their next move.” 

Redwood is already discussing cases with its brokers that demonstrate the impact of these affordability changes. Some examples of how these changes could help brokers and their clients achieve the leverage they need include: 

• Changes to cost deductions could release an additional £40,000, a 6% increase in LTV for refinancing a buy-to-let property.  

• The option to now have a 5% fee on a lower rate three-year fixed term could help a client refinance a large HMO with a 15.5% increase in LTV available 

• For a commercial deal an additional 4.9% LTV is available for the client to acquire new premises 

The maximum enhancements in LTV now possible thanks to these changes are: 

• Buy-to-let: up to 16% extra LTV 

• Semi-commercial: up to 18% extra LTV 

• HMO: up to 21% extra LTV 

• Commercial: up to 8% extra LTV 

The variations are driving results across the South, where tighter yields have often limited how much landlords and SMEs can borrow.  

The changes stem from two targeted adjustments: 

• Removal of automatic cost deductions in affordability assessments 

• The option to use the higher 5% fee for 2- and 3-year fixed term