Compare Mortgage Rates from Redwood Bank Against the Market starting at 2.7%

Redwood Bank is a UK specialist business bank launched in 2017. It is a "challenger bank" designed specifically to serve small and medium-sized enterprises (SMEs), professional landlords, and business owners.

Redwood Bank is a business bank, not a consumer bank. They do not offer standard residential mortgages. Their lending is strictly for business purposes (Commercial Mortgages and Buy-to-Let). You can compare similar Buy-to-Let lenders using our free mortgage comparison tool below: 

About Redwood Bank

Headquartered in Letchworth Garden City (with a key regional office in Warrington), Redwood Bank was founded to fill the gap left by high-street banks that had retreated from SME lending.

Uniquely, they have a "public-private" ownership structure, with Warrington Borough Council owning a significant stake (approx. 33%), giving them a strong regional focus on the North West as well as a national presence.

Their lending philosophy is "Common Sense Lending." They rely on manual underwriting rather than automated decisions. This allows them to lend to businesses and landlords with complex stories, ensuring decisions are made by human experts who understand the commercial reality of a deal.

Mortgage & Finance Products

Redwood Bank lends on properties across England, Scotland, and Wales.

• Commercial Mortgages (Owner-Occupier):

  • Loans for trading businesses to buy their own premises e.g., offices, warehouses, industrial units

  • Up to 30 years, unusually long for commercial finance, which is often capped at 15–20 years

  • Typically up to 70% LTV

• Commercial Investment:

  • Loans for investors buying commercial property to rent out to other businesses

• Buy-to-Let (BTL) Mortgages:

  • Professional Landlords: They are designed for experienced landlords, usually requiring at least 2 years of experience

  • HMOs & MUFBs: Finance for Houses in Multiple Occupation and blocks of flats

  • Limited Companies: They lend to SPVs (Special Purpose Vehicles) and trading limited companies

• Semi-Commercial(Mixed Use):

  • They lend on properties that are part residential, part commercial (e.g., a shop with a flat above). They are flexible on the split between commercial/residential value.

Pros and Cons of Redwood Bank

Here is a balanced overview of choosing Redwood for your business finance:

Pros:

• Manual Underwriting: You get a dedicated Relationship Manager. If your business accounts are complex or you are bouncing back from a tough year, a human underwriter can take a "commercial view"

• Long Terms: Offering commercial mortgage terms up to 30 years is a significant advantage, helping businesses keep monthly repayments lower compared to the standard 15-year bank loan

• Warrington Connection: Their unique backing by a local council gives them a distinct ethos of supporting regional British business regeneration

• Speed: As a nimble challenger bank, they can often issue Decisions in Principle (DIPs) much faster than the "Big Four" banks

Cons:

• No Residential: If you want to buy a house to live in, Redwood cannot help you

• Experience Required: They generally prefer experienced landlords. First-time landlords may find it harder to get approved compared to with other specialist lenders

• Intermediary Focused: While you can enquire directly, most of their complex lending is best handled via a commercial broker who can package the business case correctly

Customer Service and Reviews

Redwood Bank has a strong reputation in the business banking sector.

• Trustpilot: They currently hold a rating of "Great" (typically 4.0 - 4.2 out of 5).

  • Positive: Reviews frequently praise the efficiency of their savings account opening process and the helpfulness of their UK-based support team.

  • Negative: Some frustration is occasionally reported regarding strict "Know Your Customer" (KYC) checks during onboarding, which is standard for business banks preventing money laundering.

  • Awards: They are a multi-award winning bank, frequently named "Best Business Leasehold Lender" or "Commercial Lender of the Year" by industry bodies.

How to Apply

• Via a Mortgage Broker: It is highly recommended to use a Commercial Finance Broker. They have direct lines to Redwood’s BDMs (Business Development Managers) and can negotiate terms. We can act on your behalf with Redwood Bank, simply click get started to discuss this with us

• Direct: You can also contact their lending team directly via their website. However, direct applications with a lender won’t be compared against other providers to see if you’re getting the most suitable deal fo your circumstances and needs