Lender review · SME commercial mortgage and term loan
Redwood Bank
- Reviewed May 2026
- Editor Oliver Mackman
- Companies House 09872265
- Methodology Public
Letchworth-based challenger bank focused on commercial mortgages, owner-occupier and BTL loans for SMEs and professional landlords. PRA-regulated with FSCS deposit cover on linked savings. Pricing transparent and competitive on £250k to £2.5m commercial mortgages where high-street banks have stepped back.
Director, BestBusinessLoans
Oliver leads BestBusinessLoans's editorial reviews and methodology. With a background in UK commercial finance, he oversees lender research, rate verification and review independence.
Last reviewed: 8 May 2026
At a glance
- Product
- SME commercial mortgage and term loan
- Ticket size
- £250k to £2.5m
- Typical rate
- From 7.5% APR
- Decision time
- 5 to 15 business days
- Soft search at quote
- No
- Limited companies only
- Yes
- FCA regulated
- Yes (check the FCA Register)
- Companies House
- 09872265
- Founded
- 2015
Scores against our methodology
- Rate transparency4/5
- Eligibility clarity4/5
- Decision speed3/5
- Decline handling4/5
How Redwood Bank works
Redwood Bank operates as a sme commercial mortgage and term loan provider in the UK SMB market. Letchworth-based challenger bank focused on commercial mortgages, owner-occupier and BTL loans for SMEs and professional landlords. PRA-regulated with FSCS deposit cover on linked savings. Pricing transparent and competitive on £250k to £2.5m commercial mortgages where high-street banks have stepped back.
The product mechanic is straightforward in shape but the underwriting is sector-specific. Tickets sit in the £250k to £2.5m band, decisions land within 5 to 15 business days, and the published rate range is From 7.5% APR. A hard search may apply at quote stage; ask before you submit if credit-file footprint matters to you. Redwood Bank is FCA regulated.
Where Redwood Bank fits best: commercial mortgages £250k to £2.5m, professional btl landlords, owner-occupier sme purchases. Where it does not fit: sub-£250k tickets, speed-critical bridging, pure unsecured term loans.
Pricing examples
Worked examples using Redwood Bank's published rate range (From 7.5% APR). Simple-interest approximation, mid-band rate. Real offers will differ and should be confirmed on the lender quote.
| Ticket | Term | Estimated total cost | Approx monthly |
|---|---|---|---|
| £25,000 | 24 months | £28,750 | £1,198 |
| £50,000 | 36 months | £61,250 | £1,701 |
| £100,000 | 48 months | £130,000 | £2,708 |
Indicative only. Confirm on a Redwood Bank quote.
Eligibility
- Trading time: typically 12 to 24 months minimum for the cleanest pricing.
- Turnover floor: not always published. As a working figure, expect a £100k+ turnover requirement for term loans of £50k+. Smaller tickets and MCA structures have lower floors.
- Sector exclusions: Sub-£250k tickets; Speed-critical bridging; Pure unsecured term loans.
- Credit profile: Clean credit preferred; older satisfied items often acceptable.
- Company structure: Limited companies only.
- Best fit: Commercial mortgages £250k to £2.5m; Professional BTL landlords; Owner-occupier SME purchases.
Pros
- + PRA-regulated UK bank with FSCS deposit protection.
- + Strong on owner-occupier commercial mortgages and professional BTL portfolios.
- + Transparent pricing and underwriting criteria.
- + Direct underwriter contact on live cases.
Cons
- − Slower than bridging lenders for time-critical purchases.
- − Hard credit search at full application.
- − Below £250k they will not engage.
Best for
- · Commercial mortgages £250k to £2.5m
- · Professional BTL landlords
- · Owner-occupier SME purchases
Weak at
- · Sub-£250k tickets
- · Speed-critical bridging
- · Pure unsecured term loans
When to use Redwood Bank
Use Redwood Bank when
Your application matches the best-fit profile: commercial mortgages £250k to £2.5m, professional btl landlords, owner-occupier sme purchases. The published ticket range (£250k to £2.5m) covers your ask, the decision speed (5 to 15 business days) fits your cash-gap timeline, and the rate range (From 7.5% APR) is acceptable to you given your credit profile.
Do not use Redwood Bank when
Your profile sits in the weak-at list: sub-£250k tickets, speed-critical bridging, pure unsecured term loans. Redwood Bank will likely decline, and the decline itself can sit on broker records for 90 days. If you have any of these flags, route directly to a specialist (post-decline lender, MCA against card flow, asset-backed alternative) rather than using Redwood Bank as a screen.
FAQs
What is the minimum trading time for Redwood Bank?
Redwood Bank typically asks for 12 to 24 months of trading. Newer businesses can sometimes qualify against alternative underwriting (card flow for MCA, asset security for asset finance), but the cleanest pricing tends to require two full sets of accounts.
Does Redwood Bank require a personal guarantee?
Most UK SMB lenders require a personal guarantee from at least one director. Redwood Bank is no exception in the standard case. The few exceptions: asset-backed lending where the asset itself stands as security, and a small number of MCA structures where card flow is the underwriting basis. For sme commercial mortgage and term loan specifically, expect a PG to be requested.
How fast does Redwood Bank fund?
Redwood Bank quotes 5 to 15 business days for an underwriting decision. Funding to bank account typically follows within one to three working days of acceptance, subject to KYC, signed documents, and (where applicable) registration of any debenture or charge.
What rate should I expect from Redwood Bank?
Redwood Bank's published range is From 7.5% APR. The headline number is rarely the offered number. Rate transparency on this lender scores 4/5 in our methodology. Expect the cleaner end of the band only if you have 2+ years of trading, clean credit, and turnover comfortably above the lender's stated floor.
What happens if Redwood Bank declines me?
If Redwood Bank declines, you have three realistic next steps. First, ask for the decline reason in writing, most reputable UK lenders will tell you. Second, route the application to a specialist post-decline lender (Bizcap, JPM Capital, Bolton Finance) where credit issues are the constraint, or to an asset-backed alternative where security is available. Third, use a broker panel to fan the application across the lenders most likely to accept your specific decline reason. Redwood Bank scores 4/5 on decline handling in our methodology.
Where to apply
Apply directly via www.redwoodbank.co.uk, or use our free quote form to be matched across the UK broker panel most likely to approve your specific profile, not just Redwood Bank.
Specialty alternatives
See all lender reviews for alternatives.
Reviewed by Oliver Mackman, Director. Last reviewed: 8 May 2026. Lender website: www.redwoodbank.co.uk.