Finding the right property is hard enough. Finding it at the exact moment your current home has a buyer lined up? That almost never happens.
Most homeowners end up stuck in a frustrating loop. They spot a house they love, but their own sale is weeks or months away from completing. The seller wants a quick deal. Another buyer swoops in. The dream home disappears.
This scenario plays out thousands of times a year across the UK. But there are ways around it, and more homeowners are turning to short-term finance options to take control of the process.
Why Property Chains Cause So Many Problems
A property chain forms when multiple transactions depend on each other to complete. Your buyer needs their buyer to complete, and so on down the line. According to Zoopla, roughly 30% of agreed property sales in the UK fall through before completion, and chain-related delays are one of the biggest reasons.
Every link in the chain adds risk. A single delay at any point can stall every transaction above it. Sellers get cold feet. Mortgage offers expire. Surveyors flag issues. The longer a chain drags on, the more likely something breaks.
For anyone who has been through a collapsed chain, the financial and emotional toll is real. Lost solicitor fees, wasted survey costs, and the stress of starting again from scratch.
Breaking the Chain With Short-Term Finance
One of the most practical ways to sidestep chain problems is to use a bridging loan. This is a short-term secured loan, typically lasting between 1 and 18 months, designed to cover the gap between buying a new property and selling your existing one.
The concept is straightforward. You borrow against your current property (or the one you are purchasing) to fund the new purchase. Once your existing home sells, you repay the loan in full.
ABC Finance, bridging loan experts with over 20 years of experience arranging short-term property finance, note that bridging has grown from a niche product into a mainstream option. The UK bridging market reached over £9 billion in 2024, reflecting how many buyers now use this route.
Unlike a traditional mortgage application that can take weeks, bridging loans can often be arranged within days. Some lenders provide written terms within hours of an initial enquiry.
When Does a Bridging Loan Make Sense?
Not every situation calls for short-term finance. But several common scenarios make it a strong option.
Buying before selling. You have found the right property but your current home has not yet sold or completed. A bridge loan lets you act quickly and avoid losing the purchase.
Auction purchases. Winning a bid at auction typically means you must complete within 28 days. Standard mortgages rarely move that fast. Bridging finance fills that gap.
Renovation projects. Some properties are not mortgageable in their current state. A bridging loan funds the purchase and refurbishment, after which you refinance onto a standard mortgage.
Downsizing. If you are moving to a smaller or cheaper property, a bridge loan lets you buy the new home and sell the old one on your own timeline, without rushing to accept a lower offer.
What to Watch Out For
Bridging loans charge interest monthly rather than annually, so the costs can add up if the loan runs longer than expected. Typical rates sit between 0.4% and 1.5% per month, depending on the loan-to-value ratio, property type, and your circumstances.
There are a few things to keep in mind before committing.
Have a clear exit strategy. Lenders will want to know how you plan to repay. The most common exit is selling your existing property, but refinancing onto a longer-term mortgage is another option.
Factor in all fees. Arrangement fees, legal costs, and valuation fees all apply. Get a full breakdown before you agree to anything.
Work with a broker. The bridging market has dozens of lenders, each with different criteria. A specialist broker can match you with the right deal and often access rates that are not available directly.
Be realistic on timelines. If your current property needs significant work before it can sell, or the local market is slow, plan for a longer loan term and budget accordingly.
How the Process Typically Works
The steps involved are simpler than most people expect.
First, you speak with a broker or lender and outline what you need. They assess the property, your equity position, and your exit strategy.
If everything stacks up, you receive a decision in principle quickly, sometimes the same day. A valuation is arranged on the property being used as security.
Once the valuation comes back and legal checks are completed, funds are released. The whole process can take as little as 5 to 10 working days from start to finish, though complex cases may take longer.
Interest is usually “rolled up” into the loan balance, meaning you do not make monthly payments during the term. Everything is settled when the loan is repaid.
Is It Worth the Cost?
That depends on your situation. If the alternative is losing a property you have spent months searching for, or accepting a lower price on your current home just to keep a chain together, the cost of bridging can look very reasonable.
Consider a homeowner in the North West who finds a property at £280,000. Their current home is valued at £320,000 and is on the market but has not yet sold. A bridging loan lets them secure the purchase now. Even at a monthly rate of 0.7% over four months, the total interest cost sits around £7,840. If rushing the sale of their existing home would have meant accepting £15,000 less, the numbers speak for themselves.
The key is running the figures before you commit and making sure the maths works for your specific case.
Taking Control of Your Move
Property transactions do not have to be dictated by chain logistics. Short-term finance gives you the flexibility to move on your terms, buying when the right property appears rather than when the chain allows it.
Before going down this route, speak to a qualified broker, get independent legal advice, and make sure you understand the full cost structure. The Money Helper guide to bridging loans from the Money and Pensions Service is a useful starting point for understanding the basics.
For a broader look at how short-term property finance fits alongside other home funding options, the UK Finance mortgage market overview provides up-to-date lending data and market context.
With the right planning and professional guidance, buying your next home before your current one sells is not just possible. For many homeowners, it is the smartest way to move.
