CHAIN FREE®

CHAIN FREE® vs. Bridging Finance

Finance Period Fees Interest Exit
Fee
Notice
CHAIN FREE®

 

 

Open – bridge
90% Valuation
20 weeks (extendable
to
40 weeks)
1% payable in up to 1 Year
(No Sale – No Fee)
£298 Admin Fee
None

 

None

 

5
working days
Loan Companies

 

 

 

Bridging
Up to 80%
Valuation
Variable

 

Up to 2% payable at the start Up to
1% pm
Up to 2%

 

Up to 14 days

 

 

  • What’s the difference between CHAIN FREE® and bridging finance? 
    • IMPORTANT POINT: CHAIN FREE® enables you to secure your next property with no legal commitment to take our finance (the Fall Back Price®) or to sell your home See: An Example vs. bridging finance which legally commits you to take the Loan Companies finance and to sell your home if you can’t pay it back.
    • CHAIN FREE® is open-bridge and non-recourse finance (open-bridge means there is no repayment date and non-recourse means that you are not personally liable to repay our finance (the Fall Back Price®). Bridging and mortgages are closed-bridge recourse finance (there is a repayment date and you have to pay back the finance you borrowed).
    • CHAIN FREE® is interest-free. We are not interested in your financial status (if you have a mortgage the bank or mortgage company will want to know your financial circumstances, you will have to pay interest and if you don’t pay back the money you borrowed you can loose you home).
    • You cannot loose your home as you don’t have to pay back the Fall Back Price® (only if you take the Fall Back Price® will your house be sold). See: How it Works 
    • Because our finance is non-recourse we can only recover our finance from the sale of your house if you take the Fall Back Price®.
    • If the Sale Price of your house is lower than the Fall Back Price® you have no personal responsibility to refund us the difference.
    •  IMPORTANT POINT: Bridging finance can cost 9% (2% up-front fee + 5 months interest at 1% pcm + 2% Exit Fee) and is 9 times more expensive than joining the Home Owners Plan™ (Option 1).
    • CHAIN FREE® is ethical finance. See: Treating Customers Fairly.