Redwood Bank CEO reacts to interest rate change

06 February 2025

Following today's announcement by the Bank of England that it is dropping the base rate by 0.25% to 4.5%, Gary Wilkinson, CEO of Redwood Bank, a specialist business bank, said:

“The decision to drop the base rate is welcome news for property landlords and other business property owners, albeit the fall is not happening as quickly as was anticipated or hoped for by many in the property sector.

"Those property firms looking to buy or refinance properties to grow their portfolios or businesses looking to fund and acquire commercial premises could now benefit from lower interest rates, potentially reducing their interest costs and improving their leverage. Those with existing borrowing on variable rates will benefit from a fall in their interest payment.

"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.”