A buy before you sell mortgage is a financing solution that allows homeowners to purchase their next property before completing the sale of their current one. In the UK, this is usually achieved through bridging finance, a short-term secured loan that “bridges the gap” until the existing property is sold and a standard mortgage or sale proceeds repay the facility.
For buyers in London, where property moves quickly and competition is intense, this type of finance can mean the difference between securing a dream home and losing it to another bidder.
Typical situations where homeowners turn to this solution include:
Chain Breaks – Avoiding transaction collapse when your buyer withdraws or delays.
Upsizing or Downsizing – Securing a new property while awaiting sale completion of your existing one.
Relocation – Moving quickly for work, education, or lifestyle reasons.
New-Build Deadlines – Meeting developer completion dates without waiting on a sale.
Fraser Bond advises clients to use buy before you sell mortgages strategically, particularly when timing is critical.
Loan Structure – Usually arranged as a bridging loan secured against your current and/or new property.
Term – Short-term, typically 3 to 12 months.
Repayment – Cleared once your existing property sells or a long-term mortgage is secured.
Costs – Monthly interest (0.4% to 1.2%), plus arrangement fees (1–2%) and legal/valuation costs.
The key is having a clear and achievable exit strategy — most commonly through the sale of your current home.
Security – Allows you to buy your new home without waiting on your sale.
Speed – Completion can happen in days, compared with weeks or months for standard mortgages.
Flexibility – Supports residential homes, buy-to-lets, or mixed-use property in London.
Higher Costs – Bridging loans are more expensive than standard mortgages.
Exit Dependence – Repayment relies on the successful sale or refinancing of your current property.
Short-Term Nature – Loans must be repaid within months, not years.
Fraser Bond provides bespoke advisory for London buyers seeking to purchase before selling:
Independent Guidance – Assessing whether bridging finance is the right fit for your situation.
Lender Access – Introducing clients to trusted UK bridging loan providers.
Application Packaging – Structuring your case to secure fast approval.
Exit Strategy Planning – Ensuring repayment through sale or mortgage refinancing.
Compliance Support – Handling regulated bridging loans when the loan is secured on your primary residence.
To secure your next home with a buy before you sell mortgage solution, explore options with FraserBond.com.
