Redwood Bank has re-assessed its commercial lending proposition to boost the affordability of its commercial mortgages for professional landlords and SMEs (owner occupiers).

These changes have been made following consultations with leading brokers and reflect the continued higher interest rate environment that has placed pressure on the leverage some firms can access to invest in their premises, especially in the south of England.

Redwood is also widening choice in its commercial mortgage range, launching a new five-year fixed rate interest-only product, which reverts to capital and interest for the remainder of the mortgage term.

It is also introducing its alternative fee option to its two-year and three-year fixed rate products for commercial mortgages. This provides the option to pay a higher arrangement fee in return for a lower interest rate to boost their leverage.

Commenting on the changes Redwood senior lending product manager, Tom Worbey said: “ “We are giving SMEs choice and simplicity with our latest changes. For example, we have simplified our interest-only options by removing LTV bands, meaning SMEs can now access an initial interest-only period between one and five years as part of their mortgage term.

He added: “In addition, landlords can benefit from our award-winning Green Cashback Reward, which is available on our commercial mortgages for properties with Energy Performance Certificate ratings of A to C. It is our way of providing landlords with a cash injection while contributing to a greener future.”