Somo sees surge in landlord demand for their Breathing Space Loan
16 February 2026
Specialist lender Somo has reported a surge in demand for its newly launched Landlord’s Breathing Space Loan, as landlords across the UK look for ways to stabilise cashflow and avoid forced sales in the wake of regulatory and financial pressure.
Since launch, over 65% of enquiries have come from landlords facing immediate refinancing pressure, whilst the rest are linked to properties requiring compliance upgrades, refurbishments or arrears support, according to early application data from Somo.
The product, which offers up to 24 months with no monthly payments alongside fast access to capital, has been designed specifically for landlords navigating the impact of the Renters’ Rights Act 2025, rising buy-to-let mortgage costs and tightening rental margins.
To deepen its understanding of the pressures landlords are facing, Somo has also commissioned independent research in partnership with Landlord Knowledge, aimed at building a detailed picture of landlord sentiment, stresses and investment intentions in the post-reform rental market. Have your say here.
The findings will be published next month and will be used to further refine Somo’s product design and broker support for landlord borrowers.
Jade Keval, Sales Director at Somo, said:
“The level of interest has been exceptional and it tells a powerful story about what’s happening in the rental market. Landlords aren’t rushing for the exits, they’re looking for time and flexibility while they adjust to reform, refinancing pressure and higher costs.”
“Breathing Space gives them exactly that: liquidity without the monthly strain, and the freedom to make strategic decisions rather than distressed ones.”
Like Mr H, a North West portfolio landlord with eight buy-to-lets and mortgages expiring soon.
The Challenge
Mr H, a North West portfolio landlord with eight buy-to-lets, saw several low fixed-rate mortgages expire earlier this year.
Refinancing at higher rates would have reduced cashflow significantly, just as two properties required energy-efficiency upgrades in response to the Renters’ Rights Act 2025.
A recent void period had also created short-term arrears, further tightening affordability with mainstream lenders.
The Deal
Somo structured a £412,000 Landlord’s Breathing Space Loan secured against two properties.
- Term: 18 months
- Monthly payments: £0 for the full term
- Purpose: refinance pressure, clear arrears, fund compliance upgrades
The deal was assessed on asset value and exit strategy rather than strict rental stress testing.
The Outcome
The facility, due to complete in February, gives Mr H immediate liquidity and 18 months without servicing pressure, allowing time to complete upgrades and refinance under stronger conditions.
Somo’s Breathing Space Loan provides £25,000 to £3 million with decisions based on the asset and the strategy, not just credit scoring, giving brokers and landlords a new tool for portfolio stabilisation during a period of historic change.
“In a volatile market, time is the most valuable asset a landlord can have,” added Keval.
For further information, or to speak to a member of the Somo team, please visit somo.co.uk or contact daniela.gallucci@somo.co.uk
