SoMo’s second-charge lending has grown by one-quarter since the pandemic started.

“Second-charge lending is a niche market, and we see a lot of potential in London and the South East, which mainly concentrates on first-charge lending,” said Rob Johnson, head of underwriting at SoMo (pictured above).

•   What will affect valuations in 2022 and beyond?
•   SoMo commits over £50,000 for Free Legals initiative
•   SoMo sees 30% increase in business

“We want to educate brokers about the potential of second-charge lending; the message coming from our network is that they’re surprised by the demand and delighted that this type of loan can be used for a variety of purposes.  

“Coming out of the pandemic, we’ve been working with many businesses looking to raise funds by way of second-charge loans; some to keep their businesses afloat and others to jump on new opportunities that have arisen.  

“Whether it’s to purchase a BTL property, pay off a tax bill, or simply grow a business with new premises, materials or marketing, we’re finding brokers, intermediaries and clients are turning to SoMo because we’re able to offer a specialist and solution-based approach to second-charge lending, a leading LTV of 70% against the OMV, and rates from 0.6% pcm.

“As a business overall, we’re lending more month-on-month and year-on-year, and we see second-charge loans to be an important part of our growth strategy.”

This year, SoMo will open a new office in London to work with local BDMs and underwriters and capitalise on the second-charge sector.