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Chain Break Bridging

Found your dream house, but don't have the funds to buy it?

We may have the solution for you!

  • No hidden costs 
  • Terms up to 12 months 
  • 4.9 star rating on Feefo reviews 
  • Options from £50,000 to £50 million
 
 
 
 

Chain Break Bridging

Any property used as security, which may include your home, may be repossessed if you do not keep up repayments on your mortgage.

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Loans are secured against property - Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. We are a loan broker Authorised and Regulated by the Financial Conduct Authority (FCA).

chains on blue background

What is a property chain?

 
 
 
 

When you are buying a new property and selling your old one, you enter ‘a property chain’.

A property chain, or housing chain, occurs when a series of house transactions are linked together. If one person decides not to go ahead, it can have a domino effect on the rest of the chain, affecting the subsequent buyers and sellers.

hand holding house

What is chain break bridging?

 
 
 
 

Chain break bridging can help you access the finance you need to purchase a new property before your current house has sold. In other words, it helps you break the property chain and secure your dream home.

These solutions are short-term borrowing options. The idea is that the loan covers the gap until you have sold your old property, then you will pay the loan back in full.

This option can last up to 12 months and uses your property as security against the loan. This means should you fail to repay the loan; your property could be repossessed.

Our dedicated team have helped many customers get this solution to secure their dream home, so they may be able to do the same for you!

Before taking out this option, you need to make sure you have your exit strategy (your plan to repay the loan) laid out. 

Why would you need a chain break bridging loan?

 
 
 
 

Bridging loans are commonly used when you want to buy a new property but haven't sold your current house, so you lack the funds needed to do this.

It can also be helpful if you had someone lined up to buy your current property, but they back out at the last minute. When a property chain collapses like this, you may not have the funds needed to complete your next purchase.

By using a chain break bridging loan, you can purchase your next property, without having to rely on the sale of your old property. This allows you to move forwards with your plans and reduces the stress that can be associated with a property chain falling through.

Essentially, these solutions give you the money you need quickly, so you do not miss out on the property you have your heart set on. In other words, they help you break the 'housing chain'

Our specialist advisors are used to assisting people in these circumstances, so they could help you achieve the same.

hand pushing dominoes

Examples of when a property sale may collapse

 
 
 
 

Delayed exchange – If the exchange of contracts are delayed for whatever reason, it can force the chain to break. This may happen if there are delays in completing the conveyancing process, or if there are issues with the buyers financing.

Gazumping -This is a term for when a seller accepts a higher offer from another buyer after already accepting an offer off someone else. This can cause the entire chain to collapse if the original buyer is unable or unwilling to raise their offer.

Survey issues –If a survey reveals issues with the property that were not previously known, it could cause delays, or even result in the buyer dropping out. This can hold up or break the chain.

The buyer pulls out of the sale – Buyers can pull out of a sale for many reasons. For example, they may find another property they prefer, or decide they don’t want to move.

Advantages and disadvantages of chain break bridging

 
 
 
 

Advantages 

  • Faster purchase – By using this solution you are able to complete your purchase quickly and efficiently, without being dependent on the sale of your own property.
  • Avoid delays and stress –Property chains can be unpredictable and can often lead to delays and stress. Chain break bridging can help you avoid these problems and ensure you secure the property you’ve had your sights set on.
  • Secure your dream property –Using this option can help you take your dream property off the market before someone else has the chance to make an offer. If you had to wait for your current house to sell before you can proceed, somebody else may have snapped up the property you wanted.

Disadvantages 

  • Higher interest rates- This option can often come with higher interest rates, which can make them quite expensive. Therefore, there is the chance that you could end up paying more than you would have if you were able to sell your old property first.
  • Short-term solution – Chain break bridging are short-term borrowing solutions, so the window you have to repay will not be long. If you are unable to sell your property and pay the loan back in this timeframe, you could face hefty penalties.
  • Your home is at risk of being repossessed– As the loan is secured against your property, if you fail to repay it your house is at risk of being repossessed.
woman holding house

Am I eligible for a chain break bridging loan?

 
 
 
 

Each lender will have their own criteria and processes specific to their products, so it depends on which provider you go with.

The biggest qualifying criteria is that you need to be a property owner, as this asset will be taken as security against the loan. If you meet this basic criterion, it could be a possibility for you.

It may be useful to get in touch with a specialist broker or finance professional who can help you access this type of finance.

Our experts have access to a wide range of lenders, with many different solutions. Our experts can help match you to a lender and product that is suitable for your circumstances, and most importantly that you can comfortably repay.

minimise risk

How to minimise any risks involved with chain break bridging

 
 
 
 

Like any loan, there can be risks when using a bridging loan to break a property chain. To avoid these risks, it is important to make sure you are well informed.

Firstly, you may want to seek professional advice from a mortgage broker or financial advisor. They could help you understand the risks and costs associated with this funding solution. They could also help you find a product that suits your specific needs.

It is also important you understand the repayment terms; this includes the interest rate, fees, and any penalties for late payment or default.

To be accepted for these solutions you must have a clear exit strategy in place, which is your plan for how you will repay the loan. If you do not have this mapped out, lenders will be reluctant to let you borrow from them.

Lastly, make sure to plan. This might involve working with your estate agent to ensure a speedy sale of your old property.

magnifying glass with chart

Why choose The Loans Engine for your Bridging needs?

 
 
 
 

We can offer you specialised advice based on your individual circumstances. Our trusted advisors will always try to find the most suitable product to meet your needs.

With over 35 years’ worth of experience, and a Feefo Platinum Trusted badge, you know you are in safe hands.

Our specialists will work with you to get your application processed as quickly as possible, so that you can access the funds you need fast.

Why not give us a ring and see what we can do for you. We do not use automated phone menus; you will get through to a real person on our team when you call.

What our customers say about us

 
 
 
 
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"The Loan Engine dealt with my bridging loan, and I can honestly say that they were more proactive than me, which is saying something! I can't fault them at all - every time I rang, they knew exactly the latest position of my case, and were always helpful and polite. "
Mrs W, Bordon
22 Jan 2024
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"Great. Very helpful. Worked hard for us. Worth 5 stars. Use them anytime. "
Mr H, York
17 Jan 2024
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"They’re friendly and helpful start to finish sandip, emily thank you. From start to finish very helpful I will recommend to everyone thank you."
Mr S, Merthyr Tydfil
05 Jan 2024
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"Excellent service from start to finish. They went the extra mile when complications arose, big shout out to Thisara. I can’t recommend them enough!"
Mrs M, Leeds
12 Dec 2023
Read more reviews >>

Frequently Asked Questions - Chain break bridging | Get £50,000 to £50M fast

 
 
 
 
  • How long does a bridging loan last?

    Typically, these solutions will last up to about 12 months. The term may depend on your personal circumstances, finances and your lender.

    By going to a broker, you will have access to a wide range of different lenders. They will be able to help you with the process, and find a loan with a term that suits you.

    We have a range of specialist UK lenders who can support you. You can get in touch with us for free to get a quote.

  • What is the interest rate for a chain break bridging loan?

    Interest rates can be higher than other types of finance. This is because lenders tend to see them as more risky, due to their short-term nature.

    Other factors that also come into play are your personal circumstances, such as your creditworthiness and the amount of money you need. 

    It is important to examine the terms and conditions of any loan offer and seek professional advice before taking out a bridging loan to break a property chain. 

  • Why do property chains break?

    Property chains can break because of many reasons. This can include financing issues, delays in the buying or selling process, and changes in circumstances. These issues can cause delays, breakdowns, or cancellations in the process.

  • How much can I borrow?

    Each lender will have different maximum and minimum loan sizes, so it depends on the provider you go with. The amount you can borrow will also be influenced by factors such as your exit strategy and personal situation.

    We have a diverse range of products available, ranging from £50,000 to £50,000,000, so we can offer solutions to suit a broad range of requirements.

  • Can I repay my loan earlier?

    You may be able to pay your loan back early. However,  it's important to check with your lender before, as each provider has different conditions. For example, some may charge an early repayment fee for repaying earlier than agreed. 

    It is best to weigh up your options to figure out if it will benefit you financially in the long run. You could seek the advice of a financial advisor if you are not sure.

  • Is a chain break bridging loan the right option for me?

    Deciding whether it is the right option for you will come down to your personal circumstances.

    If you are looking to break a property chain or need quick funds to purchase your dream home, it can be a good option. However, the loan is secured against your property, which means you risk repossession if you are unable to meet the repayments. So it's important to weigh up the benefits and risks and come to a decision based on your own personal situation. 

    If you’d like to see if you are eligible, you can apply via our online form or by calling us on 0800 032 3535.

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