Redwood Bank has opened its doors with secured SME mortgages for business owners as well as experienced commercial and residential property investors.
The bank is offering commercial mortgages between £50,000 and £1.5m for business owners and professional landlords, secured on property. Interest-only options are available, while applicants have the choice of fixed and variable rates.
Redwood, which secured a banking licence four months ago, claims to be the first business bank to operate 100% on cloud-based infrastructure.
Gary Wilkinson, co-founder and chief executive of Redwood Bank, said: “As many traditional banks are hampered by poor lending practices from their past and their legacy systems, we are perfectly positioned to help British SMEs take advantage of property opportunities by offering a highly-tailored service for clients that is built around our very experienced regional managers.”
The bank also provides business deposit accounts, which will include deposits from clubs, charities and associations.
Redwood is owned by Redwood Financial Partners, a company controlled by Jonathan and David Rowland, in which Warrington Borough Council has a 33% stake.
The council’s executive board has approved an investment of £30m in Redwood as part of the bank’s capital funding.
The bank is headquartered in Letchworth, Hertfordshire and has a regional office in Warrington.
It will initially focus on lending in Hertfordshire, Bedfordshire, Buckinghamshire and Warrington.