STATEMENT: Redwood Bank CEO reacts to Base Rate decision

07 November 2024

Redwood Bank's CEO and co-founder Gary Wilkinson has issued the below statement following today's Base Rate decision:

“SMEs looking for funding to grow their businesses, or with existing borrowing on variable rates, should find the base rate cut beneficial, with lower interest costs. Professional landlords borrowing to refinance existing properties and release equity to expand their portfolio could also see their leverage improve thanks to lower rates.

“However, residential landlords will be carefully evaluating this option following the Budget announcement to increase stamp duty for second homes. While this decision is not likely to be welcomed by landlords, it does end speculation about what was to come and brings certainty to the sector. The buy-to-let market has weathered previous regulatory and economic headwinds and with lenders, brokers and landlords working together it will do so again.
 
“Businesses with surplus funds held in savings accounts should review their interest rates to make sure they remain happy with the returns on these accounts.”