A property chain break finance solution is a short-term loan, typically structured as a bridging loan, that allows buyers to complete the purchase of a new property even when the sale of their current home has been delayed.
In London’s highly competitive housing market, chain breaks are common and can cause significant stress for buyers and sellers alike. By arranging chain break finance, buyers can move forward without waiting for other transactions to complete.
Common scenarios where property chain break finance becomes essential include:
New Home Purchase Before Sale – Securing your next property while your current one is still on the market.
Preventing Transaction Collapse – Avoiding the risk of losing a London property due to delays elsewhere in the chain.
Developer Deadlines – Meeting fixed completion dates for new-build purchases.
Downsizing or Upsizing – Moving quickly without relying on simultaneous sale and purchase.
Fraser Bond supports buyers by structuring bridging finance that ensures transactions proceed smoothly and without risk of collapse.
Loan Duration – Typically 3 to 12 months, providing a temporary funding bridge.
Security – Secured against your current property, new property, or both.
Repayment – Repaid once your existing home is sold or through long-term mortgage refinancing.
Costs – Interest rates typically range from 0.4% to 1.2% per month, plus arrangement fees of 1–2%.
The critical element is having a clear and achievable exit strategy. Fraser Bond works with clients to ensure repayment plans are secure and compliant.
Prevents Lost Purchases – Allows buyers to secure their chosen property despite delays.
Speed – Funds can often be released within days, faster than standard mortgages.
Flexibility – Applicable to both residential and buy-to-let properties.
Higher Borrowing Costs – More expensive than traditional mortgage finance.
Short-Term Only – Not designed for long-term property funding.
Exit Risk – If your sale is delayed significantly, costs may rise.
At Fraser Bond, we provide expert support for London buyers facing property chain delays:
Independent Advice – Assessing whether chain break finance is the right solution.
Trusted Lender Access – Introducing clients to reputable bridging loan providers.
Application Packaging – Preparing and presenting applications for fast approvals.
Exit Strategy Planning – Ensuring repayment through property sale or remortgage.
Compliance Support – Guiding clients through FCA-regulated chain break loans when primary residences are involved.
To explore property chain break finance solutions for London homes, visit FraserBond.com.