Chain break

“I am downsizing and want to buy before I sell”

Buying before you sell removes you from the chain entirely: you complete on the new property using a bridge against your existing equity, then sell without a deadline. It costs more in finance but often recovers that in the sale price.

An illustrative situation, not a client case study. It describes the kind of enquiry this market sees. Any figures are examples, not a quotation, and no credit check or lender decision is involved in reading this.

Sound familiar?

You own your current home outright or with a small mortgage
You have found the property you want and it will not wait
You would rather not accept a reduced offer just to keep a chain together
You are moving to a smaller or cheaper property, so the numbers release equity

The situation

Downsizers are often the strongest bridging candidates in the market: substantial equity, a straightforward exit, and a property that will sell. The obstacle is purely one of sequence — the money is in the house you are living in.

Selling first means either moving twice or accepting a buyer who will wait. Buying first with a bridge removes both problems, and lets you market your existing home properly rather than against a deadline.

Why the usual lenders say no

A residential lender will not fund the new purchase while the existing mortgage is still in place, unless affordability supports both.
Most residential products have no mechanism for a short-term overlap.
Age and retirement income can further restrict term-mortgage options, even where equity is substantial.

What usually works

A regulated bridge against your existing home

Secured on the property you are leaving, repaid when it sells. No monthly payments if interest is rolled up or retained.

Taking time over the sale

An empty, presentable house marketed without a deadline usually achieves more than one sold under pressure. That difference frequently exceeds the cost of the bridge.

A term that matches reality

We set the term against how long properties like yours actually take to sell locally, not against how long you hope it takes.

Roughly how the numbers look

Illustrative figures for this situation
Example: current home	£600,000, no mortgage
New property	£375,000
Net cash needed	£375,000 plus costs
Gross LTV against the current home	Around 65%
Term	9 to 12 months

Use our calculator to see the total cost including every fee, then weigh it against the discount you would otherwise accept to keep a chain together. These are examples to show the shape of a deal, not a quotation. Work out your own figures in the bridging calculator.

What we would need from you

Photo ID and proof of address
Details of both properties and the agreed purchase price
An agent’s valuation and marketing plan for the property being sold
Proof of income, including pension income where relevant
Details of any existing mortgage
Your conveyancer’s details

Things that catch people out

Running two properties means two sets of council tax, insurance and utilities. Budget for it.
Empty properties can affect insurance cover. Tell your insurer.
The exit is the sale. If the property is unusual or in a slow local market, the term needs to reflect that.

Questions we get asked

Do I need to make monthly payments?

Usually not. Most chain break and downsizing bridges use rolled-up or retained interest, so nothing is payable until the sale completes.

How much can I borrow against my existing home?

Typically up to around 75% of its value on a gross basis, with fees and interest counted inside that figure. If you own it outright the process is usually simpler, because there is no existing lender to redeem.

Is this suitable if I am retired?

Often yes, because the loan is repaid from a sale rather than from income. Regulated bridging still requires a suitability assessment, and we will go through that with you properly.

The product that usually fits

See how it works

Every case is different. A specialist will confirm what actually fits yours.

Rather talk now?

020 4525 4876

9:00am – 5:30pm, Monday to Friday

Keep reading

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