New Bridging Loan and Rate Cuts Provide Relief for UK Buy-to-Let Landlords

Summary: Specialist lender Somo has introduced a new bridging loan product offering up to 24 months without monthly repayments to support landlords facing financial pressures amid regulatory changes and rising costs. Meanwhile, Gatehouse Bank and MT Finance have reduced interest rates on their buy-to-let mortgage products, easing borrowing costs for landlords, including those investing in HMOs and multi-unit blocks.

SEO Focus Keyword: buy to let mortgage rates
SEO Meta Title: Buy to Let Mortgage Rates Cut and New Bridging Loan Launched
SEO Meta Description: UK landlords benefit from new bridging loans and buy to let mortgage rates cuts amid rising costs and regulatory changes.

## Somo Launches ‘Breathing Space’ Bridging Loan for Landlords

Specialist lender Somo has introduced the Landlord’s Breathing Space Loan, a bridging finance product designed to help landlords manage cashflow challenges caused by rising borrowing costs, regulatory reforms such as the upcoming Renters’ Rights Act, and increased maintenance expenses. The loan offers up to 24 months with no monthly repayments, regardless of the borrower’s credit status, and is available for amounts ranging from £25,000 to £3 million.

Somo emphasises that the loan can be used to clear arrears, complete property works, or stabilise finances while landlords reassess their options in a changing market. Unlike traditional lending, Somo’s approval process focuses on the asset rather than credit scores, with decisions possible within 30 minutes. Borrowers have flexibility to exit the loan via refinancing, property sale, or further bridging solutions.

Jade Keval, Somo’s sales director, commented: “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.”

This product offers landlords a valuable option to manage short-term financial pressures without immediate repayment obligations, providing breathing room amid economic uncertainty and legislative shifts.

## Gatehouse Bank Reduces Buy-to-Let Rates for Expats and International Investors

Gatehouse Bank has announced a 0.18% reduction in interest rates across its full range of five-year fixed Buy to Let Purchase Plans, targeting UK expats and international residents. The rate cuts apply to both standard and green mortgage products, including finance options for Houses in Multiple Occupation (HMOs) and multi-unit freehold blocks.

Following the reduction, rental mortgage rates now start at 5.88% for UK expats and 5.89% for overseas residents. Applications are accepted from individuals and UK-registered Special Purpose Vehicle (SPV) limited companies.

Gemma Donnelly of Gatehouse Bank stated: “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.”

For landlords operating internationally or through SPVs, these rate reductions improve affordability and may enhance investment returns in the current market.

## MT Finance Cuts Rates and Introduces Higher LTV for HMO Mortgages

MT Finance has announced reductions in interest rates across its commercial mortgage range and launched a limited-time offer for HMOs, providing up to 80% loan-to-value (LTV) on five-year fixed products for properties with up to eight bedrooms. This initiative responds to demand for higher-yielding assets and aims to reduce the upfront capital required for acquiring or refinancing larger multi-let investments.

The lender emphasises that these changes support flexibility while maintaining a focus on speed and service. Gareth Lewis, MT Finance’s deputy chief executive, 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.”

This development is particularly relevant for landlords seeking to expand or refinance multi-let portfolios, offering improved borrowing terms and greater financial leverage.

## What This Means for UK Landlords

The introduction of Somo’s Landlord’s Breathing Space Loan provides a timely financial tool for landlords facing cashflow difficulties amid rising costs and regulatory pressures. The ability to defer repayments for up to two years can help landlords avoid distress sales or rushed decisions.

Simultaneously, the rate reductions from Gatehouse Bank and MT Finance offer more competitive financing options, particularly for expat landlords, international investors, and those managing HMOs or multi-unit blocks. These changes may improve investment viability and support portfolio growth despite the challenging economic environment.

Landlords should consider these new products and rate adjustments as part of their financial planning, especially in light of upcoming legislative changes affecting the private rented sector.

Suggested internal link anchors

• buy to let mortgage rates
• bridging loan for landlords
• Renters’ Rights Act
• HMO mortgage offers
• commercial mortgage range
• loan-to-value (LTV) for buy to let
• property investment finance
• SPV limited companies
• multi-unit freehold blocks
• landlord cashflow management
• buy to let remortgage deals

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/