Fixing a Broken Property Chain with Bridging Finance |
Posted: March 31, 2022 |
A broken property chain can be the ultimate nightmare scenario for a homeowner looking to relocate. You find your dream home at an unbeatable price, your bid is accepted and you have found a buyer for your current home. Everything seems to be going smoothly, until the buyer you lined up for your home pulls out at the last moment. Sadly, broken property chains are anything but a rarity on the UK housing market. For any number of reasons, a prospective buyer may choose or be forced to withdraw their offer at the eleventh hour. When this happens, watching your dream home slip through your fingers (perhaps not for the first time) seems inevitable. But there is a way a broken property chain can be fixed, reducing your reliance on other buyers and sellers within the chain. Repairing a Property Chain with Bridging Finance What you need is a short-term loan, which enables you to purchase your new home on the spot and repay the balance shortly afterwards when your previous home sells. Not an option with long and complex High Street mortgages, but exactly the kind of fast-access funding available at bridging finance. A bridging loan works in a similar way to conventional mortgage, though can be authorised and accessed within a few working days. This effectively turns the bidder into a cash buyer, completely eliminating their reliance on other players within the property chain. Here is a brief overview of how a bridging loan can be used to repair a broken property chain:
Bridging finance is typically charged at a monthly rate of interest of around 0.5%, making it a cost-effective facility when repaid promptly. Assuming the sale of your current home is delayed by no more than a few months, a bridging loan could be just the thing to avoid the potential nightmare of a broken property chain. Applying for Bridging Finance When time is a factor, the quickest and easiest way to apply for bridging finance is with the help and support of a specialist broker. This will also help ensure you get the best possible deal from a top-rated lender, as your broker will negotiate all aspects of the agreement on your behalf. Whether you are dealing with the headache of a broken property chain or simply looking to avoid becoming part of a chain in the first place, affordable short-term bridging finance could be just the thing.
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