Redwood Bank, an online institution which says one of its target customers is the professional landlord within the private rental sector, has opened its virtual doors.
Redwood won its banking license only four months ago and describes itself as the first business bank with 100 per cent cloud-based infrastructure.
It is wholly-owned by Redwood Financial Partners Ltd, a company controlled by Jonathan and David Rowland but with Warrington council as a 33 per cent stakeholder.
The bank’s main focus will initially be Hertfordshire, Bedfordshire and Buckinghamshire as well as in Warrington, where Redwood Bank have also opened a Warrington & North West regional office to support private rental and commercial property investors as well as small and medium sized enterprises in the areas.
For the buy to let sector the new bank will lend from £50,000 to £1.5m up to 70 per cent loan-to-value; loans can be fixed for two to 25 years for most buy to let mortgages, or a 20 year maximum for loans to buy HMOs; borrowers must have at least four buy to let properties.