| Finance | Period | Fees | Interest (or Profit Rate*) | Arrangement / Exit Fee | Notice | |
|---|---|---|---|---|---|---|
|
CHAIN FREE®
|
Open – bridge 90% Valuation |
20 weeks | 1% back-ended with No Sale – No Fee |
None
|
None
|
5 days |
| Loan Companies | Closed – bridge Up to 80% Valuation |
Variable |
Up to 2% payable at the start | From 1% pm | Up to 2% | Up to 14 days |
| * Applicable to Islamic bridging. See: Treating Customers Fairly | ||||||
Difference?
- Bridging:
- Closed-bridge finance.
- Not available from most high street banks and major mortgage lenders.
- Cannot use before legally securing property.
- Repayment date.
- Legal commitment to take the finance.
- Subject to Status (conditional on your financial circumstances).
- Recourse (legal commitment to sell if you can’t pay back the finance).
- Interest (or profit rate*)
- Your Agent must sell your house quickly.
- You can lose your home.
- You can lose the property you want to buy.
- CHAIN FREE®:
- Open-bridge finance.
- Available through the Home Owners Plan™
- IMPORTANT POINT: Can use to buy before selling.
- No repayment date.
- No legal commitment to take our finance (Fall Back Price®).
- Non-status (we are not interested in your financial circumstances).
- Non-recourse (you can’t lose your home as you don’t have to pay back the Fall Back Price®).
- Interest-free.
- Your Agent has 20 weeks to sell your house for the highest price.
- No risk of losing your home.
- Time to secure your next property. See: Example
- Bridging finance can cost over 9%: 2% up-front fee + interest (or profit rate*) from 1% pm + 2% Arrangement / Exit Fee and can be at least 9 times more expensive than joining the Home Owners Plan™. See: Proceedable Buyer