Breaking a chain

Picture the scene: you are buying a new house and your whole family are super excited. Packing has started. Your mortgage is fully agreed and the exchange of contracts is fast approaching. The person you are buying from is ready. Your estate agent is in overdrive, telling everyone that he will put a curse on them for the rest of their lives if this deal doesn’t happen.

Then your phone rings at 3pm on a Friday afternoon. News like this almost always comes on a Friday. Your solicitor coolly informs you that the person buying your property has pulled out.

You cannot complete your purchase without selling your current property. Your lender is lending you the maximum they will consider, the application was done on the basis your current property would be sold. To top it off, if you don’t sell your current property, you will have to find the extra 3% surcharge stamp duty.

Your husband or wife is in floods of tears.



Bridging Loans To Purchase a New Propety

This is where we come in. Breaking property transaction chains is where bridging finance traditionally sits and was originally its core purpose. It enables everyone to relax and move forward and, believe it or not, in 3 months time your son could still be happily on his way to that new school.

This is how we can help:

  1. We will work out to the penny what your cashflow needs to look like
  2. We will assess all your assets to find the most cost effective way to repair the chain and find you the funds you need
  3. We will clearly show you what your costs and fees will be and fully explain what your risks and contingencies are
  4. We can liaise with all parties to take control
  5. We will act immediately and with regard for the gravity of the situation

Unlike single lenders and most mortgage brokers, we have the support of over 200 lenders and the experience of Enness Private Clients to help us come up with the best solution. For example:

  • Can we convince your current lender, or another lender, to advance you more money on the purchase?
  • Can we use a mainstream lender on your current property, either on a second home, let to buy, buy to let or even bridge basis?
  • Will a private bank provide an all-encompassing solution to your needs?
  • Can we leverage other property, assets, stocks or pensions to get you the short term liquidity you need?

If none of these quite work, or will work in time, we will find a bridging lender to help. Subject to various criteria there are usually plenty who will help in this situation. After all, it’s what most of them were created to do.

We will then work with you post-completion to unwind your position to the most effective and efficient lending terms available to you from the entire market, making sure that you don’t sit on expensive terms if you don’t need to.

If you need, or more importantly think you may need, bridging finance to break a chain, call us as early in the process as possible. The more time we have, the better our solution will be for all involved, reducing cost, stress and risk.