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Somo cuts rates with immediate effect

19 December 2025

Somo welcomes Bank of England base rate reduction and cuts key product rates to support property and business growth

Somo, the specialist UK bridging lender, today welcomes the Bank of England’s 0.25% base rate reduction and has confirmed competitive rate reductions across its key first and second charge products. The adjustment is designed to support landlords, buy-to-let investors and UK businesses in accessing quick, affordable short-term funding at a time when certainty and cost control are critical.

Following the BoE’s decision to lower the base rate to 3.75%, Somo has reduced its bridging loan pricing across core products by 0.25%. First charge bridging now starts from 0.65%, with second charge pricing similarly sharpened to 0.69%.

Jade Keval, Sales Director at Somo, commented:

“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.”

Bridging market shows resilience

Despite broader economic headwinds, the UK bridging finance market continues to demonstrate resilience and sustained demand:

Bridging lending rose to £209.4m in Q3 2025, up nearly 5% quarter-on-quarter, highlighting the sector’s continued strength.
Throughout 2025, application volumes have climbed, with some reports showing an 11% year-on-year increase, alongside steady reductions in average pricing as competition intensifies.

Supporting developers, landlords and businesses

Somo’s rate adjustments reinforce its commitment to delivering fast and flexible lending solutions for almost any business need as they continue on their mission to simplify the world of bridging.

A key part of this support is Somo’s Landlord Breathing Space product, which offers no monthly payments for up to 24 months, giving landlords the time they need to renovate, recover or refinance without immediate financial pressure. The product has become increasingly valuable as landlords navigate squeezed yields, evolving regulation and rising renovation costs and it has already launched to an incredible response from Somo’s broker community.

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.”