Chain break finance is a short-term loan solution designed to help property buyers facing delays or complications in their property chain. When selling one property to buy another, a delay or problem in the chain—such as a buyer pulling out or an issue with completing your own sale—can risk the entire transaction falling through. Chain break finance is the solution to keep your property deal on track, even if your own sale hasn't yet been finalised.
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How Chain Break Finance Works:
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Bridging the Gap: Chain break finance provides the funds needed to proceed with purchasing your new home, even if your current property hasn't been sold or fully completed.
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Flexible Repayment: This finance is typically repaid once your sale goes through or when you secure long-term financing, such as a mortgage. The loan is designed to be paid back quickly, typically from the proceeds of your existing property sale or through other long-term funding.
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Short-Term Solution: Chain break finance is a temporary funding solution, helping you avoid losing your property purchase while you finalise your current sale or secure new finance.
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Key Benefits of Chain Break Finance:
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Prevent a Failed Transaction: If a delay in your property chain puts your new purchase at risk, chain break finance ensures you can move forward with confidence.
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Quick Access to Funds: The finance is arranged quickly, giving you immediate funds to proceed with the purchase of your new home.
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Flexible Repayment Terms: You can repay the loan once your sale is completed or when you’ve secured permanent financing, giving you the breathing room you need.
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Avoid Losing Your Dream Home: This finance allows you to take control of your transaction, preventing delays from affecting your ability to buy your new property.
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Things to Consider:
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Higher Interest Rates: Like most short-term financing options, chain break finance can come with higher interest rates, as it is a temporary solution designed to bridge financial gaps quickly.
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Exit Strategy Required: Lenders will typically require a clear plan for how the loan will be repaid—usually from the sale of your current property or from securing long-term financing.
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Short-Term Nature: Chain break finance is not intended for long-term borrowing. It's a short-term solution designed to get you over the hurdle of a broken chain or delays in property transactions.
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How to Apply for Chain Break Finance:
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Speak to a Mortgage Advisor: Contact one of our expert mortgage advisors to discuss your situation and determine if chain break finance is right for you.
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Prepare Your Financial Details: You’ll need to provide details of your property sale, purchase, and any potential delays in the chain.
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Submit Your Application: Complete your application and provide necessary documents for a swift decision.
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Access Funds Quickly: Once approved, the finance can be released quickly to help you proceed with your property purchase.
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Is Chain Break Finance Right for You?
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Chain break finance is an ideal solution if you’re facing delays in the sale of your property and need quick access to funds to secure your new home. It’s perfect for situations where:
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Your buyer has pulled out or delayed the sale.
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Your property chain is at risk of collapsing.
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You need short-term funding to close on your new property purchase.
If you’re at risk of losing a property due to delays in your property chain, chain break finance can help you bridge the gap and secure the home of your dreams. Our mortgage experts are here to guide you through the process and find the best financing solution for your needs.