Somo has announced a significant reduction in its bridging loan rates across both first and second charge products, aiming to keep brokers “ahead of the curve” as the market continues to gain pace.
The specialist lender has reduced its first charge rates to 0.69% per month at up to 75% loan-to-value (LTV) on open market value (OMV), while second charge pricing now starts from 0.85% with up to 70% LTV on the same basis.
The announcement follows the release of Q1 2025 data from the Bridging & Development Lenders Association (BDLA), which shows completions hit £2.8 billion in the first three months of the year.
The figure equals the record total posted in Q4 2024 and represents a strong performance in what is traditionally a quieter quarter. The BDLA also reported a 55.3% increase in new loan applications, which rose to £18.34 billion, while total loan books expanded to nearly £13 billion.
Jade Keval (pictured), sales director at Somo, said: “Bridging is growing at pace, but speed, certainty and flexibility still rule. We’ve sharpened our pricing to remain ahead of the curve and paired it with features brokers tell us they really need.”
Alongside the rate reductions, Somo continues to promote its commitment to rapid and flexible underwriting. The lender requires no formal application forms, instead issuing offers within an hour based on a streamlined 18-point checklist.
Its approach includes no lender legal fees until completion and the ability to fund loans for any business purpose.
In addition to its pricing changes, Somo highlights its capabilities in the specialist sector, including a dedicated in-house team for second charge lending and a willingness to lend even when consent from the first charge lender has been refused — offering equitable charge loans in such scenarios.
The lender also confirmed it will consider lending against a director’s residence held in their personal name, and reaffirmed its so-called ‘360Promise’ — a pledge to assess each deal individually and from all angles in order to find a way to say yes.
