These include changes to costs to help release an additional £40,000, a 6% increase in loan-to-value (LTV) for refinancing a buy-to-let (BTL) property.

The bank also has the option to have a 5% fee on a lower rate three-year fixed term to help clients refinance a large HMO with a 15.5% increase in LTV available.

For commercial deals, there is an additional 4.9% LTV available for the client to acquire new premises.

The maximum enhancements in LTV as part of the changes are: • BTL: up to 16% extra LTV • Semi-commercial: up to 18% extra LTV • HMO: up to 21% extra LTV • Commercial: up to 8% extra LTV

Redwood Bank says 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 the removal of automatic cost deductions in affordability assessments, the reduction of stress rate assessment for two- and three-year fixed term loans and the option to use the higher 5% fee for two- and three-year fixed term.

Redwood Bank head of business development (South and London) Mark Dobson 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.”

“There’s strong broker interest in these affordability improvements. I spoke to countless brokers at the recent NACFB Expo, about the ‘affordability boost’ and how it’s enabling better outcomes for their clients across the country, but especially the South East.”