Avoid FOMO on Second Charges

With over 30% of the bridging market now being made up of 2nd charge loans - what could you be missing out on?

This year, SoMo have completed more and more Second Charge loans, a trend that is also being seen across the bridging market as a whole.


Peer2Peer Finance News recently reported: “There is certainly the appetite, with figures from Loans Warehouse data revealing that second charge lenders reported an 83 per cent increase in lending in February 2022.”


What is a Second Charge loan?

When SoMo, as the lender, provides Second Charge bridging, we are second to be repaid following the first charge taking priority.


Take Gill for example, she came to SoMo to take out a bridging loan against her main residence that already had a mortgage in place. The bridging we provided was a Second Charge loan i.e a secondary debt behind her mortgage.


With her original mortgage classed as the first charge debt, the mortgage lender would take priority for repayment in the event of repossession, and SoMo’s bridging loan would be repaid from any remaining equity.


When can Second Charge loans be needed?

Second charge loans can be helpful for a number of purposes whether the client is needing to renovate a property, buy a new property, refinance an existing mortgage or to meet a tight deadline such as a tax or VAT bill.



Avoid FoMo. Contact SoMo for your Second Charge cases with a market leading 70% LTV and rates from 0.6%.

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