How Somo generates market-leading returns in the UK bridging investment space
The UK bridging market is a favourite of investors given the exciting returns potentially available. Leading the space is Somo, with advertised interest rates of 10.32 per cent p.a. in the first quarter and second quarter of this year – more than any other platform in the space.
On the same timeframe, none of the other leading, property-backed lending platforms have managed to generate double digit returns of average interest earned. The closest returns generated by Somo’s peers were 8.82 per cent and 8.75 per cent, with the others generating 7.46 per cent and 7.72 per cent.
Read more: Somo launches UK’s first capital loss guarantee on second charge loans
Somo’s market-leading returns, coupled with zero capital losses in its 11 years of operation, has made the platform a popular destination for investors. Somo is the second-most established property bridging platform in the market (just one year behind the next most established platform) and this is what comes through in the returns.
“Our returns are built on experience, with 11 years of successful trading behind us,” explains chief executive Louis Alexander (pictured). “We put a huge amount of effort into each loan, all carefully underwritten and backed with robust documentation.
“A combination of the latest tech with human experience and judgement helps us create and maintain such high standards.”
This is reflected in the kinds of loans available on the platform, all secured against UK property, with Somo focusing exclusively on short-term, asset-backed bridging where the team have deep expertise.
Staying ahead of the market
The focus on such eye-catching figures is continuing to intensify in such a competitive space as property backed bridging loans. The Somo team have tested and strengthened their processes through many tough times – not only the pandemic but multiple property and economic cycles. These periods taught the Somo team how to manage risk while adapting to changing conditions – continually strengthening relationships with brokers and borrowers to generate a steady flow of quality lending opportunities.
Read more: Somo launches prime borrowing service
Building on this success, Somo is continually innovating to stay ahead of the market and further cement its leading position. In November this saw Somo launch a capital loss guarantee to offer investors protection on up to the first 10 per cent of any loss on second charge property loans.
“This schemes provides direct, transparent and defined coverage,” says Alexander, “unlike more complex credit enhancement mechanisms used elsewhere in the market.”
Somo’s second charge portfolio has also performed strongly. As of April 2025, 580 second charge loans had been repaid, with 100 per cent of capital returned and 99.66 per cent repaid with full advertised interest, delivering an average annual return of 10.33 per cent.
The bigger picture
Alexander and his team are proud of the headline figures that Somo has generated in its history, but the chief executive is keen to point to other pieces of information that investors need to consider.
Read more: Somo marks 10 years of zero losses to investors
Attention-grabbing returns may be all well and good, but Alexander stresses that returns are only one part of the picture and that it’s important to understand everything that goes into generating these.
“Any fool can lend money, but the art is in getting it back,” he concludes.
This is commercial content, produced in partnership with Somo.
