Redwood Bank
A specialist SME bank lending commercial mortgages of £250k to £10m to owner-occupiers and professional landlords, with individual underwriting and rates from around 6.34 per cent.
What they do
Redwood Bank is deposit-funded and lends only against commercial and semi-commercial property in England, Wales and Scotland. Facilities run from £250k to £10m with a cap of about £6.5m on any single asset, at up to roughly 71 per cent loan to value including fees, on terms from two to thirty years. Affordability is tested on rental cover, at 130 per cent for limited company borrowers and 145 per cent for individuals. Every case is assessed on its own merits by a person, through brokers or directly.
Where they fit in a lower-mid-market raise
Where a target business owns its premises, this is a clean way to fund the property leg of a transaction on a long term at a rate well below bridging, leaving the operating company's cashflow to support the rest of the structure. Long amortisation profiles, up to thirty years, are unusual among specialist lenders and materially reduce the annual debt service.
Where they are not the fit
This is a property sleeve, not acquisition debt: goodwill, earnings and working capital cannot be funded here. Ground-up development is excluded, as are single assets worth less than £75k. The £6.5m single-asset cap limits what one building can carry.
Published terms
- Pricing
- Commercial fixed rates from ~6.34% (2025 headline); margin over base not separately published
- Speed to terms
- Not published
- Sponsored or sponsorless
- Corporate/owner-managed and landlord borrowers; not a private-equity sponsor leveraged lender
- Where they lend
- England, Wales and Scotland (BD coverage includes Scotland per redwoodbank.co.uk/inside-redwood)
- How they decide
- Individually assessed cases ('on their own merits'); intermediary (broker) and direct channels. Delegated authority not published
- Covenants
- Maintenance covenants, tested every period
- Search funds and ETA
- No published route for search-fund or first-time acquirer borrowers
As published by the lender and last reviewed June 2026. Terms quoted on a deal are set by the credit, not by a published band.
What rules a deal out
Stated limits, taken from Redwood Bank’s own published criteria. A limit is where a lender starts from, not where it always ends: several of these move on a strong enough credit.
- Property-secured only, not cashflow/acquisition debt
- Max ~71.4% loan to value (including. fee)
- Max £6.5m per single asset
- No single asset under £75k market value
- Not a leveraged/private-equity sponsor lender
- No appetite in adult, crypto, gambling, ground-up development or weapons
How they sit against the category
- Its published ceiling is £10m; 54 of the 75 property-backed lenders here go at least as high.
- 65 of the 75 publish an indicative price at all; it is one of them.
Counted across the 75 property-backed lenders in this directory, on what each one publishes. What a lender discloses and what it will do are different things.
Questions this page answers
How large a facility does Redwood Bank write?
Published facilities run £250k to £10m. A band is what a lender states it will do, not what it will do on a given credit.
Does Redwood Bank lend to search funds or ETA buyers?
Not on the published evidence. Redwood Bank publishes no route for search-fund or first-time acquirer borrowers. A searcher's route to a lender usually runs through the quality of the target and the equity behind it.
Where does Redwood Bank lend?
England, Wales and Scotland (BD coverage includes Scotland per redwoodbank.co.uk/inside-redwood).
On the record
2024: new lending nearly doubled YoY to £136m; loan book +18.1% to £492m; PBT £2.7m; total assets £635m (Mortgage Solutions.
May 2025: re-priced/re-structured commercial proposition - new 5yr fixed interest-only product, removed LTV bands on interest-only to boost affordability/leverage (Mortgage Solutions / Bridging & Commercial.
March 2025: won Money Age 'Best Innovation in the Mortgage Space' for Green Reward cashback (redwoodbank.co.uk.
Sources: redwoodbank.co.uk · bridgingandcommercial.co.uk
This profile is a curated reference note drawn from public sources, not financial advice or a recommendation. Appetite and terms change; a lender's fit for a given credit is established by approaching it, not inferred from a page.