By Phoebe Shaw, Business Development Executive at Somo
When I first joined Somo I thought a “bridging loan” was just another type of finance product. Fast forward a few months, and I’ve realised it’s one of the most flexible, problem-solving tools brokers can offer their clients. If you’re a broker who’s new to bridging, or just need a quick refresher, here are the things I wish I’d known from day one.
Q: What exactly is a bridging loan?
A: A bridging loan is short-term finance designed to “bridge” the gap between a client’s immediate need for funds and their longer-term exit strategy. Unlike traditional mortgages, bridging loans are quick to arrange, often in days rather than weeks or months.
At Somo, deals have been completed in as little as 48 hours when urgency matters most.
Q: Who are bridging loans for?
A: They’re not just for property developers (although they’re big users). Bridging loans are for any client who needs:
- Speed - funds fast when traditional lenders take too long.
- Flexibility - clients with complex circumstances or unusual assets.
- Opportunity - snapping up property at auction or securing a deal before another buyer.
Somo has been around since 2014 so we really understand brokers. Your client gets the solution they need and you get a trusted partner who looks at every case from every angle - we call it our 360Promise approach.
Q: What can bridging loans be used for?
A: Almost anything property-related, such as:
- Auction purchases
- Purchasing business assets
- Restructuring finance
- Purchasing under value
- Business Funding
- Business expansion
- Refurbishments and conversions
- Raising capital
- Solving tricky cashflow challenges
- Paying a bill
- Refinancing
- Even for Insolvency, Bankruptcy or other financial difficulties
And don’t forget second charge bridging. Somo is a market leader here, helping brokers unlock equity for clients without disturbing their first charge mortgage.
Q: What are first, second, third and equitable charge loans?
A: This is one of the things that confused me most when I started at Somo! The terms “first charge” or “second charge” are all about priority of repayment - who gets their money back first if a property is sold.
First charge loan: This is the primary loan secured against a property. Usually it’s a mortgage. The first charge lender has first rights to repayment if the property is sold.
Second charge loan: This sits behind the first charge. It allows a borrower to unlock additional equity without disturbing their main mortgage. Somo is a market leader in second charge bridging - something many lenders shy away from.
Third charge loan: These are rarer, but sometimes you’ll see a third lender coming in behind the first and second. It’s higher risk (because they’re third in line to be repaid), but it can still work in the right scenario.
Equitable charge loan: This is slightly different. Instead of registering a legal charge with the Land Registry, the lender has an agreement (often supported by a restriction on title) that still secures their interest. It’s useful when a legal charge can’t be put in place straight away, but the lender still needs security.
Q: How do you repay a bridging loan?
A: Bridging deals need a clear exit strategy - that’s how the lender knows they’ll get their money back. Typical exits include:
Sale of the property
Refinancing onto a mortgage
Another capital injection (e.g. from business funds or investments)
But here’s the clever bit: sometimes your client doesn’t have a clear exit plan. That’s where Somo’s Valuation Only product comes in. It allows brokers to place deals that other lenders might reject, because Somo takes a pragmatic, asset-focused approach.
Q: How long can you have a bridging loan for?
A: Bridging loans aren’t designed to be long-term, but they’re also not just “quick fixes.” Most lenders offer terms between 6 and 18 months. At Somo, there’s more flexibility — from as little as 1 month right up to 24 months if your client needs more breathing space. That’s ideal for brokers dealing with clients who want short, sharp finance or a slightly longer runway.
Q: What security do you need for a bridging loan?
A: Bridging loans are secured against property or land. That could be:
A residential property (owner-occupied or investment)
Commercial property
Land with or without planning permission
Somo is open to a wide range of asset types, giving brokers more ways to place deals. Whether it’s a straightforward residential case or something more unusual, the team’s 360Promise approach means they’ll look at every angle to try and say yes.
Q: What’s the difference between regulated and unregulated bridging?
A: This was one of the first things I had to wrap my head around!
Regulated bridging: Secured against a borrower’s home, and fully FCA-regulated. Typically for homeowners looking to solve a chain break or similar.
Unregulated bridging: Secured against investment or business property, not the client’s home. This is Somo’s focus, and it’s where brokers can access the most flexible, creative funding solutions - and we will lend against a Director’s main residence, even if it’s in the Director’s name.
Q: Why Somo?
A: From my Exec’s desk, here’s what’s really stood out!
Proven performance – over £400m lent to date and we’ve been going for 11 years!
No capital losses – Somo has an unbroken record of protecting investor funds.
Broker-first focus – “Why make bridging difficult?” isn’t just our tagline, it’s how the team works.
Second charge specialists – many lenders avoid them, but Somo embraces them, giving brokers more options to place deals.
Q: What’s my biggest takeaway?
A: Bridging loans aren’t just a “niche” product - they’re a broker’s secret weapon for solving client problems quickly and creatively. At Somo, the culture is all about finding a way to say yes. That means brokers don’t just get a lender, they get a partner.
Get Started
If a Bridgng loans sounds like the right option for you or your client, get in touch with our expert team today.
📞 Call us on: 0161 312 5656
📧 Email: borrowers@somo.co.uk
💻 Apply online here
Categories: Broker News
