Chain-break finance
Your sale falls through but the purchase is still alive. A regulated bridging loan can hold the move together while you re-sell. The costs are real, so the exit plan comes first.
Chain-break finance is short-term lending, usually a regulated bridging loan secured on property, that lets you complete your purchase before your sale completes. It exists for one situation: the move you genuinely want to save, where losing the purchase costs more than the bridge. It is expensive money with a strict clock, so the decision starts with the exit, the sale of your current home, and works backwards. We price it honestly and tell you plainly when it is not worth it.
Who this is for
- Your buyer has pulled out late and your onward purchase is at risk of collapsing.
- You have found the right house before your current one has sold and do not want to lose it.
- You are downsizing with no onward chain pressure and want to buy first, sell calmly after.
- You want a straight answer on what a bridge costs before you go anywhere near one.
A chain-break loan covers the purchase price, or the missing part of it, until your current home sells. The loan is secured on property, often on both homes, and is repaid in one lump when the sale completes.
When it makes sense
A sale collapsing late in an otherwise solid chain. A purchase you have invested months and survey fees in. A downsize where buying calmly first and selling after suits you. What it is not for is stretching affordability: a bridge does not make a house you cannot afford affordable, it only changes the timing.
How the costs work
Bridging interest is quoted monthly, commonly in the region of 0.5% to 1% a month depending on the loan-to-value (LTV, the loan as a percentage of the property value) and the case. Interest is usually retained or rolled up rather than paid monthly, so the balance grows until redemption. Add an arrangement fee, commonly around 2% of the loan, plus valuation and legal costs. As a worked example, a £200,000 bridge at 0.75% a month running for six months accrues around £9,000 of interest, plus roughly £4,000 to £5,000 of fees. Call it £13,000 to £14,000 as the price of keeping the purchase. Sometimes that is clearly worth it. Sometimes a price reduction to re-sell fast costs less. We put both numbers on the table.
The exit is the application
Bridging lenders lend against the exit, not the income. For chain-break cases the exit is the sale of your current home, so the lender wants evidence the asking price is realistic and the property is marketable. We pressure-test the exit before applying, because an optimistic asking price is how six-month bridges become twelve-month problems.
What we charge on bridging cases
Bridging sits in our specialist category. We charge no broker fee on any case; the lender pays us a procuration fee on completion. Any third-party costs are always disclosed in writing before you commit to anything.
Common pitfalls we see
Bridging with no credible exit and hoping the market co-operates. Underestimating re-sale time and watching rolled-up interest eat the equity. Taking the first bridging quote rather than comparing, when pricing varies materially between lenders. For the full picture on bridging beyond chain-break, see our bridging loans page.
How Major Money Matters helps
Specific things we do for this case type. No generic platitudes.
Tell you honestly if a bridge is worth it
We price the bridge against the alternatives, including a faster re-sale at a lower price. If the bridge loses, we say so before you spend a penny.
Pressure-test the exit first
The exit is the sale of your current home. We sanity-check the asking price and marketability before any application, because the exit is what the lender is really underwriting.
Move at chain speed
Chain-break decisions happen in days, not weeks. Quick callback, and we keep your solicitor and agent in the loop so the purchase holds.
Plan the step after the bridge
Once the old home sells and the bridge redeems, the remaining mortgage often needs restructuring. We set that route up at the start, not as an afterthought.
Frequently asked questions
How fast can chain-break finance complete?
Faster than a standard mortgage. Many cases complete within two to four weeks of application, and some lenders move faster on clean cases with clear exits. Speed depends most on the valuation and the legal work, so we line both up from day one.
Is bridging regulated?
When the loan is secured on the home you live in or are moving into, it is regulated by the Financial Conduct Authority. The FCA does not regulate some forms of bridging loans, and regulated bridging is commonly arranged on shorter terms, though this varies by lender and product. Bridging on investment property sits outside the regulated regime.
How much can I borrow on a chain-break loan?
Bridging lenders typically lend up to around 70% to 75% loan-to-value across the property or properties used as security, with criteria varying by lender. The strength of the exit matters as much as the percentage.
What happens if my house does not sell within the term?
Options include a term extension, a re-bridge or a price reduction to force the sale, none of them pleasant and all of them more expensive than planning properly. We build a realistic sale timeline into the case from the start so this stays a contingency, not the plan.
Is a bridge cheaper than losing the purchase?
Sometimes, and that is the whole calculation. Survey and legal costs already spent, the cost of re-finding a comparable house, and the price of renting in between sit on one side; bridge interest and fees on the other. We run that comparison on your actual numbers in one call.
Related
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Read moreWhat our clients say
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Chain broken but the purchase still alive?
Quick callback. A quick 15-minute call prices the bridge, tests the exit, and tells you honestly whether it is worth it. Fees on specialist cases always disclosed in writing first.
Named adviser, wherever possible. No call centre. We aim to return your call as quickly as we can. Mon to Fri 9am to 5pm, weekend appointments on request.