BTL lender offers landlords ‘breathing space’ and others cut rates

Specialist lender Somo has launched a new bridging product aimed at landlords grappling with rising borrowing costs and regulatory reform as the Renters’ Rights Act approaches.

The lender said its new Landlord’s Breathing Space Loan has been designed for those facing cashflow pressure.

Along with reforms, the lander says landlords are dealing with higher maintenance bills and economic uncertainty which have squeezed yields.

Somo’s product offers up to 24 months with no monthly payments, regardless of credit status, alongside loans from £25,000 to £3,000,000.

Landlords are squeezed

The lender says funds can be used to clear arrears, complete works or stabilise finances while landlords reassess their options.

Decisions are based on the asset rather than traditional credit scoring, with approvals possible within 30 minutes.

Borrowers can exit via refinance, sale or a further bridging solution, giving scope to adapt as legislation and market conditions evolve.

Somo’s sales director, Jade Keval, said: “As the tenancy landscape changes dramatically, many landlords find themselves squeezed.

“Our Breathing Space Loan gives them the time, flexibility and liquidity to stabilise, adapt and plan ahead, without panic or rushed decisions.”

Gatehouse lowers rates

Gatehouse Bank has announced a drop in rates of 0.18% across its full range of five-year fixed Buy to Let Purchase Plans for UK expats and international residents.

The changes apply to both standard and green products, including finance for HMOs and multi-unit freehold blocks.

Applications are accepted from individuals and UK registered SPV limited companies.

Following the reduction, rental rates now start from 5.88% for UK expats and 5.89% for overseas residents.

The bank’s Gemma Donnelly said: “Today’s rate reduction ensures we are continuing to offer competitive rates within the market, therefore helping even more customers achieve their property investment goals and further encouraging inward investment in the UK.”

MT Finance has a BTL offer

Meanwhile, MT Finance has announced rate cuts across its commercial mortgage range and unveiled a limited time HMO offer providing up to 80% LTV on five-year fixed products for properties of up to eight bedrooms.

The lender said the move responds to demand for higher yielding assets and lowers the upfront capital required to acquire or refinance larger multi-let investments.

It added that the changes support flexibility while maintaining its focus on speed and service.

The lender’s deputy chief executive, Gareth Lewis, said: “By lowering rates across our commercial range and introducing an 80% LTV limit for our HMO offer, we are giving our clients significantly more borrowing capacity to achieve their property goals efficiently in the current market.”

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