At a glance:
- Facility: £570,000 gross second-charge bridging loan
- Security: Buy-to-let property, Brighton
- Value: £2.5m
- LTV: 62%
- Rate: 0.87% per month
- Scenario: Refinance of a bridge already in default (default date: 23 December 2025)
- Exit: Sale (clear route to exit)
- Outcome: Default repaid in full; moved onto a stable 12-month facility
The Challenge
Mr and Mrs W needed to refinance an existing bridging loan that fell into default on 23 December 2025. The current facility was priced at 1.20% per month, and with default interest being applied, costs were rising quickly.
The loan was secured against a high-value buy-to-let property in Brighton, but time was critical. They needed a lender who could move fast, take a pragmatic view, and stabilise the position.
The Deal
Somo provided a £570,000 gross second-charge bridging loan against a property valued at £2.5m, delivering a conservative 62% LTV.
Despite the loan being in default with the previous lender, the case met Somo’s Low Rate criteria due to:
- Strong asset quality
- Clean credit
- A clear sale exit
- The borrower contributing additional funds
- This enabled Somo to complete the refinance at 0.87% per month, significantly lower than the rate being paid prior to default.
The Outcome
The defaulted bridge was repaid in full and the client moved onto a stable 12-month facility at a far lower monthly cost. This gave them time to market and sell the property on their own terms—turning a potentially escalating situation into a controlled, affordable route to exit.
Why make bridging difficult?
At Somo, we don’t judge cases by what’s gone wrong - we look at what still stacks up and the responsible ways we can say yes. Strong assets, sensible exits and committed borrowers deserve fair pricing, even when a loan has defaulted.
What this means for brokers
If you’ve got a client facing default interest or time pressure, this is the type of scenario we can often help with - particularly where the asset is strong and the exit is clear.
Typical fit:
- Refinance of an existing bridge (including defaulted facilities)
- Strong property security
- Clear sale/refinance exit
Speak to Somo about a refinance quote for your client.
Get in touch
📞 0161 312 5656
Find your Regional Relationship Director today or explore our full range of bridging loan products.
FAQs
Can you refinance a bridging loan that’s already in default?
- Yes. Where the underlying security is strong and there’s a credible exit, a refinance can repay the defaulted lender in full and stabilise costs. Each case is assessed on the asset, the exit, and the overall risk.
Why use a second-charge bridge for a refinance?
- A second-charge facility can be a practical route where replacing the first charge isn’t suitable, or where speed and structure matter. The key is ensuring the overall position stacks up and the exit is clear.
What do you need to assess a defaulted bridge refinance?
- Typically: property details, current facility terms (including default interest), a clear exit plan, and borrower background. Where relevant, evidence of additional funds being introduced.
How quickly can a refinance complete?
- Timeframes depend on valuation, legals, and complexity, but the goal in urgent refinance scenarios is to move efficiently once the key information is in.
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