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SoMo pledges to lock down rates on bridge loans in Q3

  • 01/07/2022
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SoMo pledges to lock down rates on bridge loans in Q3
SoMo said it would honour all rates locked in from July to September as brokers face growing uncertainty with lenders becoming more risk averse.

SoMo, which offers short-term finance on bridging loans, cited rising Bank of England interest rates, stock market fluctuations, and the effect of the war in Ukraine on global supply chains and energy costs for spurring its decision.

Jade Keval (pictured), sales director at SoMo, said:  “We’re 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 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.”

Unlike some other lenders, she said, SoMo will “offer a second charge loan for any business purpose” as a way to temper tough times.

Keval was promoted to sales director in June after five years with SoMo. At the time, Louis Alexander, chief executive of SoMo said Keval was the right person to “lead our hardworking sales team as we enter a volatile economy.”

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