TL;DR: Rising interest rates and tight lending criteria are creating funding challenges for UK property investors and developers. Somo's business bridging finance offers fast, flexible short-term loans (1-24 months) for refurbishment, development and refinancing - with decisions based on asset value, not the borrower’s credit file. Ideal for auction purchases, commercial conversions, and time-sensitive opportunities across the UK.
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The Remortgaging Wave and Rising Borrowing Costs
According to a recent report by The Guardian (September 2025), more than 350,000 residential borrowers across the UK came off fixed-rate mortgages between late June and September 2025. While this headline focuses on homeowners, the underlying trend - rising borrowing costs and stricter lending criteria - has far-reaching implications for property investors, developers, and businesses relying on finance.
Enter Somo. A specialist lender financing business-purpose bridging loans secured against UK property helping investors, developers and brokers navigate tight lending conditions with fast, flexible funding solutions based on asset value.
The Wider Impact of Higher Interest Rates
Higher interest rates and the end of low-cost mortgage products are creating significant liquidity pressures across the UK property sector. The consequences extend beyond residential homeowners:
Challenges Facing Property Investors and Developers
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Landlords coming off low-rate buy-to-let deals face substantially higher monthly payments
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Small developers seeking to fund new property projects struggle to secure traditional bank finance quickly
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Mainstream lenders are tightening criteria, requiring more proof of income and affordability
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Time-sensitive transactions such as auction purchases risk falling through without agile funding solutions
For businesses and professional property investors in Manchester, London, Birmingham, and across the UK, these pressures demand flexible, fast-access finance that traditional lenders cannot provide.
Somo's Business-Focused Bridging Finance Solutions
Somo does not lend on consumer residential mortgages. Instead our bridging loans help businesses and property developers access the finance they need to keep moving. Whether it’s releasing capital tied up in property, raising funds quickly for an acquisition, or bridging a short-term cashflow gap, we provide flexible bridging loans designed around the needs of commercial borrowers. Our Valuation Only™ product can be particularly useful for those who cannot provide proof of credit, income, or affordability.
Fast Acquisition and Refurbishment Finance
Bridging loans allow investors to purchase properties or sites quickly, then refinance once refurbishment or planning is complete. Somo's loans range from 1 to 24 months, with up to 75% LTV and interest rates starting from 0.69%.
Refinancing and Exit Strategies
Businesses facing expiring short‑term funding can use bridging to refinance portfolios, avoiding default or forced sales while arranging longer‑term finance. Our loans provide breathing space to manage sales, lettings or development milestones.
Flexible Criteria for Complex Property Cases
Because Somo offers a loan product that focuses on the asset value and exit plan rather than personal income, Valuation Only™, we can fund scenarios where conventional lenders decline:
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Commercial property conversions
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Mixed-use properties
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Auction purchases requiring fast completion
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Borrowers with adverse credit histories
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Time-sensitive transactions
Why Brokers Should Consider Bridging Finance
For brokers advising businesses, landlords and developers, bridging finance should be a core part of your funding toolkit. The broader economic pressures highlighted by the residential remortgaging wave underscore the importance of quick, adaptable funding solutions.
Benefits of Partnering with Somo
By partnering with Somo - a patron lender of the National Association of Commercial Finance Brokers, brokers can:
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Help clients seize time-sensitive opportunities with fast decision-making and funding
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Provide solutions when mainstream lenders cannot act quickly enough or decline complex cases
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Support property businesses through refinancing, refurbishment, and growth phases
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Access a lender with a #1 financial health rating by 4thway
Business Finance Solutions We Support
Explore how Somo's bridging finance solutions can turn market uncertainty into opportunity for your business:
Property Finance
- Acquisition Finance
- Development Finance
- Refinancing
- Auction Finance
Business Finance
- Cash Flow Funding
- Asset Funding
- Invoice Funding
- Stock Funding
- Working Capital Funding
- Equipment Funding
- Expansion Finance
- SME Funding
- Business Loans
- Bad Credit Finance
Frequently Asked Questions About Business Bridging Finance
What is business bridging finance?
Business bridging finance is a short-term loan (typically 1-24 months) secured against UK property, designed to help businesses, property investors, and developers fund time-sensitive property transactions, refurbishments, or refinancing needs.
How quickly can Somo provide bridging finance?
Somo specialises in fast decision-making and funding. Our streamlined process allows us to assess applications quickly and provide funding from within 14 days, making us ideal for auction purchases and urgent transactions.
What loan-to-value ratios does Somo offer?
Somo offers up to 75% LTV on First Charge bridging loans and up to 70% LTV on Second Charge loans.
Do I need good credit to get a bridging loan from Somo?
No. Somo's Valuation Only™ product requires no proof of credit, income, or affordability. We lend based on security property value and your exit strategy, making us ideal for borrowers with adverse credit.
What types of property projects can Somo finance?
Somo can finance a wide range of properties including commercial conversions, mixed-use properties, residential investment properties, and properties purchased at auction.
Can brokers work with Somo?
Absolutely. Approximately 96% of our business comes through brokers. We offer a blended service where we handle all processing, allowing brokers to maintain strong client relationships while we deliver fast, responsible lending. You can find your regional relationship director here.
Get Fast Bridging Finance Today
If you're a property investor, developer, or broker looking for flexible, fast-access business bridging finance in the UK, Somo is here to help. With a focus on saying 'yes' to complex cases, we turn market challenges into opportunities.
Contact Somo today:
📞 0161 312 5656
📧 brokers@somo.co.uk
Ready to explore your bridging finance options? Get in touch with Somo's expert team and discover how we can support your next property project with fast, flexible funding solutions.
Categories: Borrower News, Broker News
