Over 30% of the bridging market is now being made up of Second Charge Loans - what could you be missing out on? We're discussing the definition, their uses and what sets Somo apart from other lenders when it comes to Second Charge loans.
Contents:
- The Rise of Second Charge Bridging Loans
- What is a Second Charge Bridging Loan?
- When are Second Charge Bridging Loans needed?
- Why Choose Somo for Your Second Charge Bridging Loans?
The Rise of Second Charge Bridging Loans
This year, Somo has seen a significant increase in the completion of second charge bridging loans, reflecting a broader trend in the bridging market. According to Alternative Credit Investor, “There is certainly the appetite, with figures from Loans Warehouse data revealing that second charge lenders reported an 83 percent increase in lending in February 2022.”
While other lenders may shy away from second charge lending due to perceived high risk, Somo specialises in this area. We understand the steps required to mitigate potential risks, allowing us to say “Yes” to clients who may have been turned away elsewhere.
What is a Second Charge Bridging Loan?
A second charge bridging loan is a type of loan where Somo, as the lender, holds a secondary charge on the property behind the existing mortgage (the first charge). This means the first charge lender has priority for repayment in the event of repossession.
Second charge bridging loans are ideal for borrowers who need to release some equity in their property quickly without disturbing their existing mortgage arrangements. For example, Gill came to Somo to take out a bridging loan against her main residence, which already had a mortgage. The loan we provided was a second charge loan, meaning it was a secondary debt behind her mortgage. In case of repossession, the mortgage lender would take priority for repayment, and Somo’s bridging loan would be repaid from any remaining equity.
When are Second Charge Bridging Loans needed?
Somo provides second charge bridging loans for all business purposes, this may include:
- Paying off business debts or bills
- Refurbishing properties
- Covering employee wages
- Funding new premises
- Acquiring new materials
- Launching a marketing campaign
- Upgrading systems
Why Choose Somo for Your Second Charge Bridging Loans?
Market-Leading 70% LTV: We offer a competitive loan-to-value ratio, giving you access to the funds you need.
Competitive Rates: We are committed to offering better rates and terms than any other second charge bridging loan offers you currently have.
Second Charge Experts: Our expertise in second charge bridging loans allows us to provide solutions where others see only risk.
Contact Us
If you have a Bridging Enquiry, find out who your local relationship director is here.
Call 0161 312 5656 or email brokers@somo.co.uk.
Categories: Broker News, Borrower News
