What Redwood Bank does

Redwood Bank is a UK-regulated specialist business bank founded in 2017 in Letchworth Garden City, authorised by the Prudential Regulation Authority and regulated by the FCA and PRA (FRN 755924). It operates two product lines: commercial mortgages (for professional landlords, business owners, HMO investors, and property refurbishment) with loans ranging from £250,000 to £10 million, and business savings accounts (35-day, 95-day, 1-year and 2-year bonds, plus charity savings). As of 31 December 2025 the bank held total assets of £610m, customer deposits of £547m, a lending portfolio of £490m, and reported £91m of new lending in 2025, having originated £850m+ cumulatively since launch.

The technology stack is a cloud-based banking platform with a digital loan processing system that digitises the lending workflow from application to drawdown, complemented by online banking portals with mandatory two-factor authentication, encrypted session management, and a self-service Commercial Mortgages Calculator for intermediaries. Differentiated features include individually assessed underwriting that accommodates complex borrower structures (trusts, LLPs, SIPP, expats, layered ownership, Grade II Listed buildings), a Green Reward Cashback for EPC A-C rated properties, and an Alternative Fee Option for five-year fixed rate products. Headcount is approximately 150, with full C-suite depth across Risk, Finance, Treasury, Operations, Commercial, IT, and Underwriting functions.

The business model generates revenue primarily through net interest spread between lending rates (4.84–6.34% fixed on mortgages) and deposit costs (up to 4.25% AER), supplemented by 2% arrangement fees on new loans (with 1.5% procuration fees paid to brokers). Distribution is split between a broker/intermediary channel served by regional Business Development Managers across Great Britain (South & East, Midlands, North, Warrington, North East & Yorkshire, Scotland) for mortgage products, and direct online/postal channels for savings accounts. The bank has achieved five consecutive years of profitability, with profit before tax of £0.8m reported for FY2024, and serves SME businesses, professional landlords, and charities across the United Kingdom.

Name

Redwood Bank

Legal name

Redwood Bank Limited

Website

https://redwoodbank.co.uk

Company type

Private

Founded year

2017

Operating status

Operating

Headcount range

101–250 employees

Short description

Redwood Bank is a UK-regulated specialist business bank offering commercial mortgages (£250k–£10m) and business savings accounts to SMEs, professional property landlords, and charities across Great Britain, distributed via a regional broker network and direct channels.

Ownership category

akta.pro rank

Product category

Specialist Commercial Banking

NAICS

Commercial Banking (522110)

SIC

Mortgage Bankers & Loan Correspondents (6162)

akta.pro primary industry

Construction & Development (C&D) Lending — Commercial/Multifamily (FSALADAH)

akta.pro secondary industry

Renovation Mortgage Origination (FHA 203(k), HomeStyle, CHOICERenovation) (FSALAAAL)

Keywords

• Commercial mortgage lending
• Business savings accounts
• Property investment loans
• SME banking services
• Charity savings products

Headquarters

HQ city

Letchworth

HQ country

United Kingdom

HQ region

Europe

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales

Revenue model

1. Commercial Mortgage Interest: Interest income generated from commercial mortgages, semi-commercial mortgages, residential investment (buy-to-let), and HMO mortgages. Loans range from £250,000 to £10m with interest rates from 4.84% (residential fixed) to 6.34% (commercial fixed). Income based on spread between lending rates and cost of deposits.
2. Savings Deposit Interest Spread: Interest paid to savers on business savings accounts (35-day, 95-day, 1-year bonds, 2-year bonds, charity accounts) at rates up to 4.25% AER. Bank uses these deposits to fund mortgage lending, generating spread income. Currently holds more than £500m of customer deposits.
3. Arrangement/Proc Fees: Standard new loan fees of 2% of debt amount. 1.5% procuration fee paid to brokers on completion. Alternative fee option (higher fee/lower rate) available for 5-year fixed rate products. Fees incorporated into loans.
4. Green Cashback Reward: Cashback payments to borrowers with EPC-rated properties (A-C ratings receive 0.20%-0.50% cashback). Funded as part of mortgage products, encourages energy-efficient properties and generates customer loyalty.

Pricing tiers

Go-to-market motion3 records

Distribution channels4 records

Marketing channels6 records

Core offering

Redwood Bank is a specialist UK challenger bank providing individually assessed commercial mortgages (for property landlords, business owners, HMO properties, and refurbishment projects) alongside a range of FSCS-protected business savings accounts (35-day and 95-day notice accounts, 1-year and 2-year fixed bonds, and charity savings). The bank lends from £250,000 to £10 million, primarily distributing mortgages through mortgage brokers and savings products directly through its website, with deposits funding the lending book.

Product overview

Redwood Bank is a specialist UK business bank offering two core product lines: business savings accounts (35 Day, 95 Day, 1 Year Bond, 2 Year Bond, and Charity Savings) and commercial mortgage products (for professional landlords, business owners, HMO properties, and property refurbishment). These are complemented by value-added features including the Green Cashback Reward for energy-efficient properties, an Alternative Fee Option for enhanced borrowing flexibility, and a Commercial Mortgages Calculator for intermediaries. The bank's proposition is unified around individually assessed, flexible lending and straightforward savings, supported by British-based service teams.

Differentiator

Problem solved

Functional benefit

Products and services

• 35 Day Business Savings Account A variable-rate business notice savings account requiring 35 days' withdrawal notice, paying 3.55% AER annual interest or 3.49% monthly interest, with deposits from £10,000 up to £1 million per single account. Targeted at UK-based businesses seeking FSCS-protected returns on cash reserves.
• 95 Day Business Savings Account A variable-rate business notice savings account requiring 95 days' withdrawal notice, paying 3.85% AER annual interest or 3.78% monthly interest. Targeted at UK businesses seeking higher returns in exchange for longer notice.
• 1 Year Business Savings Bond A fixed-rate business savings bond with a one-year term, paying 3.90% AER annual interest or 3.83% monthly interest, with no withdrawals permitted before maturity. Targeted at UK businesses locking in returns over a fixed period.
• 2 Year Business Savings Bond A fixed-rate business savings bond with a two-year term, paying 4.25% AER annual interest or 4.17% monthly interest. Targeted at UK businesses seeking a longer fixed return on surplus cash.
• Charity Savings Accounts Savings accounts tailored for charities, clubs, and not-for-profit organisations, providing access to notice accounts and fixed-rate bonds with FSCS protection up to £120,000. Targeted at registered charities and not-for-profits seeking competitive returns on reserves.
• Commercial Mortgages for Professional Landlords Individually assessed commercial and residential investment mortgages for experienced property landlords, covering buy-to-let, small and large HMOs, and semi-commercial properties, with loans from £250,000 to £10 million. Targeted at professional landlords, limited companies, LLPs, trusts, and SIPP/SSAS schemes.
• Commercial Mortgages for Business Owners Commercial mortgage lending for SMEs to acquire new premises or refinance existing commercial property, with loans from £250,000 to £10 million and terms up to 25 years. Targeted at small and medium-sized business owners seeking to purchase or refinance commercial premises.
• Commercial Mortgages for Property Refurbishment Secured refurbishment finance for experienced property investors and developers, offering flexible terms of 3, 6, 9, or 12 months, with up to 70% of refurbishment costs and a fee-free transition to a long-term mortgage upon completion. Targeted at experienced property developers.
• Houses of Multiple Occupation (HMO) Mortgages Specialist HMO mortgages for professional landlords and portfolio investors to purchase, refinance, or exit bridging finance, covering small HMOs (up to 6 rooms) and large HMOs (7+ rooms), with loans up to £10 million and LTVs up to 76.5%. Targeted at experienced HMO landlords.
• Five-Year Fixed Rate Mortgage Five-year fixed rate mortgage product offering landlords long-term rate certainty, with an Alternative Fee Option (higher fee, lower rate) structure to enable gross leverage improvement. Targeted at professional property landlords seeking predictable multi-year repayment costs.

Quantifiable outcome

• £850m+ lent since 2017
• +3 more outcomes

Named customers8 records

Segments5 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Seven partnerships are on record, tiered minor and core.

• Warrington WolvesminorOthers · 1 February 2023Redwood Bank signed a two-year sponsorship deal with Warrington Wolves (February 2023). This supports regional brand awareness and community connections. The bank also continues support for Warrington Youth Zone.
• Hellios FSQS (Financial Supplier Qualification System)coreOthersRedwood Bank joined the Hellios FSQS Community to enhance supplier management processes and oversight. FSQS standardises requests for compliance and assurance data for suppliers at both onboarding and during the ongoing lifecycle of contracts. This supports the bank's responsible and sustainable supplier engagement.
• Local Chambers of CommerceminorOthersRedwood Bank is a member of local Chambers of Commerce in areas where they are based (Letchworth and Warrington) to meet and work with local businesses, supporting local communities.
• Investors in the Environment (iiE)minorOthersRedwood Bank holds silver accreditation from Investors in the Environment (iiE), reflecting progress in reducing waste and promoting sustainability. The bank was shortlisted for Best Social Impact 2025 by iiE.
• HM Treasury Women in Finance ChartercoreOthersRedwood Bank is a signatory to the Women in Finance Charter - a commitment by HM Treasury and financial institutions to work together to build a more balanced and fair industry. The bank set and achieved targets for female representation at senior management level.
• Warrington Youth ZoneminorOthersRedwood Bank continues its support for Warrington Youth Zone as part of its community and charity initiatives, strengthening regional community connections.
• DMK FinancecoreChannel Partner/ Reseller/ DistributorLong-standing broker partner who submitted DIP application for Scottish portfolio refinance case study. DMK Finance has been a top broker partner for years with a great working relationship across Britain. The broker facilitated the £1m+ refinance deal for AK Properties.

Scale indicators12 records

Recent moves13 records

Expansion highlights6 records

Direct peers

• Allica Bank: UK specialist challenger bank focused on commercial property and SME lending — directly comparable to Redwood in target customer (professional landlords, SMEs), product set (commercial mortgages, BTL), and broker-led distribution model.
• OakNorth Bank: UK specialist bank providing commercial property and SME lending, with a strong technology platform and broker/intermediary relationships — competes in the same complex-property lending niche as Redwood but at significantly larger scale.
• Shawbrook Bank: UK specialist challenger bank offering commercial mortgages, BTL and bridging finance to SMEs and property investors — directly comparable product set, target segment and specialist niche positioning.
• Hampshire Trust Bank: UK specialist bank focused on property finance, asset finance and savings — overlapping commercial property mortgage and business savings proposition with Redwood.
• Atom Bank: UK digital-only challenger bank with a specialist focus on residential mortgages and business lending — comparable as a UK challenger bank with a technology-forward proposition and specialist lending orientation.
• Cambridge & Counties Bank: UK challenger commercial bank providing property finance, asset finance and savings products — directly comparable in target segments (commercial property, SMEs, savings) and scale profile to Redwood.
• Aldermore Bank: UK challenger bank offering asset finance, commercial mortgages, BTL and business savings — overlapping proposition across Redwood's lending and savings products, though at considerably larger scale.
• Cynergy Bank: UK challenger bank providing specialist property lending, business banking and savings — directly comparable in product mix and target customer (SME borrowers and depositors).
• Paragon Bank: UK specialist bank with a strong buy-to-let and commercial property lending franchise plus business savings — directly comparable BTL and commercial mortgage proposition targeting professional landlords, similar to Redwood's core segment.

Broad incumbents

• Metro Bank: UK challenger incumbent offering commercial, business and retail banking including commercial property lending — overlapping capability with Redwood's commercial mortgage proposition but operating a much wider product portfolio and branch network.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/redwood-bank
• Xx.com/redwoodbank
• Instagraminstagram.com/redwoodbank
• Facebookfacebook.com/redwoodbankuk

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles33 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Redwood Bank