Using Bridging Finance for Chain Breaks


We started off January with a 75% increase in enquiries compared to December, with our bridging team being kept very busy.

Market sentiment is one of great uncertainty, meaning buyers are hesitant about the direction of house prices and find themselves second guessing whether now is the right time to buy – this causes breaks in the property chain.

House prices fell by 0.3% between October and November, according to the latest figures from the Office for National Statistics (ONS).

The housing market saw a further weakening at the end of 2022, with metrics tracking property sales, instructions, and price trends displaying further declines, according to the the latest RICS Residential Survey. Results also suggest that the market will remain on this downward trend over the coming months.

Bridging finance is often portrayed as a last resort, however in this environment it is anything but.

Mortgage brokers, MPowered, surveyed 4,000 UK adults: they found two-thirds of sellers would sell only to a chain-free buyer in today’s market, while 29% would expect a larger offer from a buyer who was bound by a chain.

We have competitive bridging solutions available – rates from just 0.45% pcm (5.4% PA)* are in line with current residential mortgage rates.

Bridging finance is not just for ‘bridging’ gaps and chain breaks, it can also be used for auction purchases and refurbishment & development projects.

Speak to our dedicated bridging finance team today on 02920 766 565 or by requesting a call back here.

For more property tips, check out our finance & investment blog.

*Available on properties with a total loan to value of less than 75%. Minimum loan size £50,000.

Article By Tom Rowlands

January 25th, 2023

Tom joined Pure Property Finance in 2017 after a career as a Client Wealth Manager, where he spent just under 3 years advising on financial and tax planning. Tom specialises in bridging finance and property development funding, having completed deals ranging from a simple £30K property purchase through to £2m+ mixed-use developments.

See more articles by Tom