Specialist lending firm, SoMo Bridging, has committed to guarantee its existing rates for all new business over the next quarter.

The Bank of England has increased interest rates again and they are now at their highest level since 2009. In response, at least 10 high street mortgage lenders have raised their rates, with more expected to follow.

SoMo has decided to honour all rates locked in from July to September.

Jade Keval (pictured), sales director at SoMo, said: “Interest rates are going up, the Bank of England has also raised its forecast for peak of inflation this year to slightly above 11%, with the FTSE 100 continuing to fluctuate and the war in Ukraine impacting global supply chains and energy costs.

“We’re in in the middle of a cost of living crisis and many commentators are predicting the UK will move into a recession. It’s a worrying time with much uncertainty, but what we do know is that brokers should expect most lenders to become risk averse over the coming months, meaning rate hikes and lower rates of underwriting.

“SoMo understands that at such uncertain times, people appreciate guarantees. We therefore want to brokers to know that we intend to hold firm with our existing low rates for all new business over the next quarter, so they can move forward with confidence.

“As a solutions-based lender we want to reassure our broker community we’re committed to finding ways to secure their deals. Unlike many other lenders we’ll offer a second charge loan for any business purpose, meaning we’re here to help businesses in need during these tough times.”