Somo has moved quickly to cut rates across its bridging range following the Bank of England’s decision to lower base rate by 0.25 percentage points.

The specialist bridging lender said it has reduced pricing across its core first and second charge products with immediate effect, aiming to improve affordability and certainty for landlords, buy-to-let investors and UK businesses seeking short-term finance.

Following the Bank of England’s decision to reduce base rate to 3.75%, Somo has applied a 0.25% cut across its bridging loan pricing. First charge bridging rates now start from 0.65%, while second charge pricing has been reduced to 0.69%.

Jade Keval (pictured), sales director at Somo, said: “Somo welcomes the Bank of England’s rate decision, which will help relieve pressure on borrowers.

“And with these cuts, developers, landlords and businesses can access the speed and flexibility we’re known at even more affordable rates.”

RESILIENCE

Somo’s announcement comes against a backdrop of continued resilience in the UK bridging market, despite wider economic uncertainty.

Bridging lending rose to £209.4m in Q3 2025, an increase of nearly 5% quarter-on-quarter, underlining sustained demand for short-term finance.

Application volumes have continued to climb throughout 2025, with some reports pointing to an 11% year-on-year increase, while average pricing has edged down as competition in the sector intensifies.

SUPPORTING LANDLORDS AND BUSINESSES

Somo said the rate cuts reinforce its focus on providing fast and flexible lending solutions for a wide range of business needs, as it continues its stated aim of simplifying the bridging process.

A key part of that approach is the lender’s Landlord Breathing Space product, which allows landlords to make no monthly payments for up to 24 months. The product is designed to give borrowers time to renovate, stabilise cashflow or refinance without immediate repayment pressure.

Somo said the product has grown in relevance as landlords contend with squeezed yields, changing regulation and higher renovation costs, and has already seen strong engagement from its broker partners.

Keval added: “We hope the base rate cut – and Somo’s quick response – will be seen as an early Christmas present and we look forward to supporting UK businesses and landlords throughout 2026 and beyond.”