Somo delivers 70% LTV second-charge refinance ahead of deadline

Somo has delivered a second-charge loan at 70% LTV to allow a borrower to refinance an existing bridging loan.

The facility, which was offered at 0.95% per month, refinanced a deal which was due to go over term in 10 working days.

If the borrower missed the deadline, Somo said they would potentially have to consider selling their property quickly rather than waiting for the right offer.

The lender instructed the solicitor and valuer as soon as the case reached underwriting, with the valuation inspection and report completed within four working days.

In order to avoid delays with the first-charge mortgage provider giving consent, Somo contacted them directly and confirmed that consent would be issued once the process had been completed.

With that assurance in place, Somo agreed to proceed using an Equitable Charge, with the borrower’s solicitor undertaking to upgrade the charge once consent was received.

The refinance completed within the borrower’s deadline, helping them avoid additional default fees and interest.

Somo also honoured the original 0.95% monthly rate, despite completing on an Equitable Charge basis.

The borrower now has a full 12-month term to market the property.

Somo senior underwriter, Joe Cash (pictured above) commented: “Ten working days is a tight turnaround for any refinance, but speed is about more than just moving quickly, decisions need to be made fast too.

“We got the valuation and legals underway immediately, as always stayed close to the case throughout and when first charge consent threatened to slow things down, we found a sensible way forward.”