SoMo’s Second Charge campaign leads to 63% boost in broker enquiries

Leading bridging firm leads with 63% more enquiries about Second Charge loans than April brokers. SoMo, has declared its recent campaign of educating brokers about the advantages of Second Charge and Equitable loans a huge success. 

Louis Alexander, SoMo CEO, said: “With the cost-of-living crisis effecting everyone, businesses and individuals alike, we wanted to raise awareness of – and uses for – our Second Charge and Equitable Charge loans. Over 25% of First Charge lenders do not approve the Second Charge consent but as we don’t require consent from the First Charge lender, it gives SoMo an increased acceptance rate of clients. We accept this risk and for this reason, we’re very successful in this area.  

“If you’re a Broker and you’re using a bridging lender for Second Charge loans, you should only ever use one that allows for refused consent. So many cases stall or fail entirely at this stage, you really are looking after your clients’ best interests by choosing a lender that offers this.”  

The Second Charge now accounts for more than 50% of all SoMo loans. This is what many businesses use to raise working capital, refinance Coronavirus Business Interruption Loan Scheme loan loans, hire staff, or fund new ventures. 

Louis closes: “SoMo has focussed on Second Charge lending from the very beginning, and it comes as no surprise to us that the market is growing. Commercial lending allows funds to be available within weeks, unlike traditional banks. Commercial finance brokers would understand the advantages and disadvantages of commercial finance packages and bridging loans better than they do today. 

“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.” 

SoMo’s fun – FOMO – campaign, saw some brokers receive helium-filled FOMO balloons and take to social media to share their photos and comments among their community. 

This year, SoMo – a specialist in second charge loans – will open a new office in London, in part to work with London-based Business Development Managers and Underwriters and capitalise on the second charge market.  

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