Award-winning specialist bridging and business finance

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.

Our minimum loan term is 1 month and maximum loan term is 36 months.

As we are an unregulated lender, our loans can be used for business or investment purposes, including: Tight transaction deadlines Often banks and high street lenders cannot facilitate a short term loan quickly enough whereby it takes several weeks, often months to underwrite. Banks will not lend More and more banks have an inability to lend on non-standard mortgage deals. As such, a bridging loan offers a quick, realistic process with decisions made by real investors. Business cash flow This takes many forms and is very common. Whether it is to fund a short term cash flow requirement or to purchase a new business or even start a new one up then a bridging loan is often the quickest and most realistic prospect of raising the funds. With this loan the applicant will need to demonstrate that they can repay the loan either i) through the business or ii) through sale of the security or iii) another realistic repayment model. Paying tax liabilities quickly or divorce settlements We provide bridging loans to pay tax bills or to help in a divorce settlement. Renovation or refurbishment of a residential, commercial or buy to let property We are finding more and more that banks will not lend on properties that are in need of refurbishment or redevelopment. In this instance a bridging loan is the perfect tool to help finish the property. Auction purchase – pre-approval required and fast completion Often clients require pre-approval for a property that they wish to bid on at auction and need to complete within 14 days after successfully purchasing the property. In this instance, a bridging loan is the perfect tool to help facilitate the purchase. Often the exit strategy is to pay the money back via a traditional mortgage. Chain break finance A classic bridging loan need – where a client has an offer on their property but wishes to purchase another (or put a deposit down) and funds are required quickly for a short period and repaid when the property transaction completes. Conversions Converting a property from a dwelling into flats or vice versa. Landlords who are equity rich but cash poor / portfolio equity release Many people, including landlords, have a lot of equity but cash may be tight. We will lend so that equity can be released from the properties in order to purchase new ones or pay off arrears and help get finances back on track. Require a loan where interest is not serviced monthly Interest on bridging loans can be serviced, rolled-up or retained. This means you can use the equity in a property to guarantee interest payments and these are paid on redemption. Acquisition finance for business tenants to purchase their business premises from their landlord Bridging loans for high net worth individuals Large bridging loans for high net worth individuals for any purpose - subject to a realistic exit strategy. Bridging loans for adverse credit applicants Many people require a bridge because the banks and high street lenders have shut the doors firmly on anyone with adverse credit. A bridging loan is there to help get finances back on track, and in doing so, improve the credit scores. Revolving credit facility (only on exceptional cases of low LTVs and high loan amounts) We can offer a bridging loan secured against a main asset whereby the charge is registered and remains in duration and this allows you to draw down in stages as and when required.

We aim to approve loans, subject to a valuation and underwriting, within 30 minutes of your application. Once you agree to the decision in principle the completion time is up to you and your solicitors. The time scale depends on a few factors beyond our control such as second charge consent, if applicable, and the availability of local surveyors and your solicitors but we have been known to complete a case within 7 days. Should you require, we can place you with one of our panelled solicitors to speed up the process. If your case is urgent and you need a quick completion, please advise your broker or case handler as to the deadline date and the reason why, we will then be able to offer a fast track service.

Yes. Often people seek a bridging loan as they have gone over term on their financial commitments and as a result have adverse credit. A bridging loan can be a good tool to help alleviate the financial pressure and allow clients the time and flexibility to return to a stable footing again and improve their credit.

We understand that every client and case is unique. Our flexible product range means we can choose the best product for your client and their specific situation. Simply tell us about your case and we’ll do the rest, ensuring you get the most for your client. Submit a case(www.somo.co.uk/submit-a-case)

Simply fill in our short application form and one of our team will come back to you with a full credit-backed offer. If you are a direct Borrower: Apply for a loan (www.somo.co.uk/apply)here. If you are a Broker looking for a quote on behalf of a client: Submit a case (www.somo.co.uk/submit-a-case)here.