Redwood Bank has relaxed criteria on its commercial investment and commercial owner-occupier mortgage ranges.

The lender says the changes are designed to improve affordability for landlords amid difficult market conditions.

It has extended its maximum mortgage term from 25 to 30 years and reduced minimum debt service coverage ratios across key lending categories.

For commercial investment loans, the minimum ratio for limited companies has fallen to 135% to 130%, and for personal borrowers it has dropped from 150% to 145%.

The same reductions apply to commercial owner-occupier mortgages.

The bank has also cut commercial mortgage interest rates, with variable rates now starting from 4.04% plus base rate and fixed rates from 7.09%.

Redwood Bank senior product manager Tom Worbey says: “Affordability is front of mind in today’s market. 

“Landlords are dealing with higher costs and tighter yields and businesses face reduced business rates relief and increased national insurance. 

“All of these add extra burdens to these businesses and brokers are working harder than ever to structure viable deals.

“By extending our mortgage term and reducing the minimum coverage ratios, we’re giving brokers and their clients greater flexibility to find the commercial borrowing they need.”