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Somo Launches UK’s First Capital Loss Guarantee on Second Charge Loans

  • Writer: Emily Jackson
    Emily Jackson
  • Nov 3, 2025
  • 1 min read

Updated: Feb 27

Second charge limited capital loss

Alternative Credit Investor report on Somo's launch of our Second Charge Capital Loss Guarantee...


"UK bridging lender Somo has launched a capital loss guarantee, offering investors protection on up to the first 10 per cent of any loss on second charge property loans.


The Second Charge Limited Capital Loss Guarantee will apply to all loans originated after 1 November 2025, with aggregate coverage capped at £1.2m, the firm said. Loans made before that date will not be covered.


Somo said the scheme provides “direct, transparent and defined coverage”, unlike more complex credit enhancement mechanisms used elsewhere in the market."


🔗  Read the full article here.

Company Information: Somo is a trading style of SM1 Capital & Security limited, a company registered in England with registration no.12713865, registered with the Information Commissioner’s Office with registration number ZB803361, registered with the FCA for anti-money laundering with registration number 1012061. Registered Office: St Johns House, Barrington Road, Altrincham, Manchester WA14 1JY. The Somo business is unregulated for both borrowers and investors.

Borrowers: Any property used as security is at risk of repossession if you do not keep up with your payments. Somo’s bridging loans are unregulated. If you are unsure about any aspect of the information provided by the company, you should seek advice from an independent financial adviser familiar with bridging loans. Terms apply.

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