Somo funds £350k BTL purchase at £150k below market value
Original Article Summary
<p>Somo structured a second charge bridging loan against a borrower's main residence to fund a below-market-value buy-to-let purchase and clear outstanding mortgage arrears.</p>
Investor Analysis
Bridging lender Somo used a second charge against a borrower's primary residence to fund a £350k purchase of a £500k BTL property, clearing mortgage arrears and securing £150k of day-one equity. The case illustrates how specialist bridging can unlock BMV opportunities for investors with temporary adverse credit.
Investor Relevance
This article is relevant to BTL investors and BRRR-strategy practitioners who may encounter BMV opportunities but lack liquid capital or carry credit blemishes. It signals that second charge bridging — even against a primary residence — can be structured to simultaneously clear arrears and complete an acquisition, a financing pathway that could materially change how investors assess apparently unreachable opportunities.
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