In response to the economy continuing its transition from lockdown and the restrictions easing from Covid-19, the Bank has agreed to make some changes to appetite on Retail, Leisure and Office sectors. The aim is to be able now to look at “good” deals in sectors for which we have not recently had appetite to consider. I have listed below a summary of our revised offering:
- Residential properties including HMO’s – we can lend up to 70% (plus fee) over a 30 year term
- For residential properties within the M25 we can look at a loan term up to 35 years
- Residential investment properties, including portfolio lends up to £6.8m
- We are happy to look at assisted and supported living cases where these are in standard residential properties that have C3 or C4 use
- Commercial investment has always remained within our appetite. We are however now expanding back into the Retail, Leisure and Office sector and welcome new enquiries.
Please note we will not look at ‘High Street Retail’
- For owner-occupiers, we shall require evidence that the business was trading profitably pre-Covid, that it has met its obligations during the lockdown/restrictions, and that it is trading profitably again post the relaxation of these restrictions, taking into account the cost of any BBL/CBILS facilities that may have been taken.
- Commercial & mixed use properties – we can lend up to 65% (plus fee) (although is currently under review) over a 25 year term. Pure retail assets max term is 20 years.
- DSC remains at a minimum of 130%
- Our minimum loan size remains at £125,000 (except for existing customers) and our maximum loan exposure is £6.8m to any one customer group
- Just a reminder that we lend against the valuation not the purchase of properties
Credits: Redwood Bank