Somo provides £145,000 bridging loan to resolve landlord arrears

Specialist lender Somo has completed a £145,000 second charge bridging loan to assist two portfolio landlords in clearing mortgage arrears across their buy-to-let properties. The 18-month loan was facilitated through the company’s ‘Landlord Breathing Space Second Charge’ product.

The borrowers had fallen behind on mortgage payments and faced a title restriction at HM Land Registry due to unpaid management company charges. The funding allowed the landlords to bring their accounts current and remove the restriction without disturbing an existing first charge mortgage of £65,000 on a property valued at approximately £460,000.

The loan structure provides the landlords with time to sell two properties from their portfolio at market value rather than being forced into distressed sales. Jade Keval, chief operating officer at Somo, noted that the facility provides breathing space for experienced landlords with significant equity who require time to execute asset sales.