Breaking the Chain: How Bridging Finance Is Helping Homebuyers Move Faster
In today’s fast-moving property market, speed can make all the difference.
Increasingly, we’re seeing buyers raise funds through bridging finance to break housing chains and secure the home of their dreams without waiting for their existing property to sell.
At Clark Shaw Associates, we’ve been advising more and more clients who want to act quickly, and bridging finance is proving to be a valuable tool in the right circumstances.
What Is Bridging Finance?
Bridging finance is a short-term loan secured against your property (or sometimes multiple properties). It’s designed to “bridge” the gap between buying your next home and selling your current one.
In practice, this means you can:
- Secure your new property straight away
- Avoid losing out to another buyer
- Take the time to achieve the right sale price on your existing home
- Once your sale completes, you use the proceeds to clear the bridging loan.
Why the Rise in Bridging?
The property market has become increasingly competitive, and many sellers won’t take their homes off the market until a buyer is ready to proceed immediately. For buyers caught in a chain, this can be stressful and in some cases, lead to heartbreak if the chain collapses.
Bridging finance removes that uncertainty by allowing you to buy first and sell later.
The Advantages of Bridging Finance
Speed: Bridging loans can often be arranged in days rather than weeks, meaning you can secure your dream home quickly.
Chain-Breaking Power: You no longer have to wait for your buyer to be ready, putting you in a stronger negotiating position.
Flexibility: You can choose when to sell your current home, which can help you achieve a better sale price.
Peace of Mind: You can move on your timeline, without rushing under pressure to meet someone else’s deadlines.
Things to Consider
While bridging finance can be a fantastic solution, it’s not for everyone. Interest rates are not necessarily higher than a traditional mortgage, but the arrangement fees and other associated costs can make it an expensive solution.
That’s why you should have a clear repayment strategy in place (usually via the sale of your current home) and seek expert advice to make sure the numbers work for you.
At Clark Shaw Associates, we help clients weigh up the costs, benefits, and risks before deciding if bridging is the right move.
Our Advice
If you’re in a property chain and worried about losing the house you love, speak to an experienced mortgage adviser before making any big decisions. Bridging finance can be a smart, strategic move but professional advice is essential to make sure it fits your situation.
By Clark Shaw Associates – Mortgage & Financial Solutions
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