SoMo guarantees to lock down rates amid interest hikes
Following news that the Bank of England has increased its interest levels again, specialist lending firm, SoMo | Bridging, has committed to helping brokers move forward with confidence by guaranteeing its existing low rates for all new business over the next quarter.
The Bank of England has increased interest rates again and they are now at their highest level since 2009. In response, at least 10 high street mortgage lenders have raised their rates, with more expected to follow. Inevitably this will have a big impact on the housing market, which was already beginning to slow.
While this news puts the housing market in a vulnerable position – and brokers facing growing uncertainty as lenders become risk averse – it is SoMo’s mission to offer them some confidence during these turbulent months by holding firm and honouring all rates locked in from July to September.
Jade Keval, sales director at SoMo explains: “Interest rates are going up, the Bank of England has also raised its forecast for peak of inflation this year to slightly above 11%, with the FTSE 100 continuing to fluctuate and the war in Ukraine impacting global supply chains and energy costs.
“We’re in 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 to 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.
“As a solutions-based lender we want to reassure our broker community we’re committed to finding ways to secure their deals. Unlike many other lenders we’ll offer a Second Charge loan for any business purpose, meaning we’re here to help businesses in need during these tough times.”