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CHAIN FREE®

An Example

Selling

RICS Valuation £350,000

 CHAIN FREE® (a chain-avoiding insurance type arrangement available through the Home Owners Plan™ for a 1% Fee deductible from our finance).
See: Plan T&Cs for full detailsThe Plan enables you to quickly secure your next house against competition with 20 weeks to find the right mortgage and any additional finance required.

Signing our Offer Documents to join the Plan does not legally commit you to take our finance (Fall Back Price®) or to sell your home until such time as you instruct your solicitor to send us a Drawdown Notice.
See: How it Works

Buying

£400,000

You sign our Offer Documents (with no legal commitment to take our finance or to sell your home) and receive our offer of a Fall Back Price®.

You can now tell the sellers Estate Agent that you are a
“cash buyer up to your Fall Back Price® and are arranging any additional finance required to complete the purchase”.

Your First Offer could be £376,000
(£400,000 less 6%/£24,000)

Second Offer £368,000
(£400,000 less 3%/£12,000)

Third Offer £396,850
(£400,000 less our 1% Fee/£3,150)

You can wait to sell for your Asking Price and before selling use CHAIN FREE® to buy at a discount*

Assume

– Selling Price (Valuation) £ 350,000
– Fall Back Price® (90% £350,000) £ 315,000
– 1% Fee (1% Fall Back Price®) £ 3,150 
– Buying Price £ 400,000
– 6% Saving on Buying Price £ 24,000

Savings

– On Buying Price £ 24,000
– Less 1% Fee £ 3,150
– Total Saving £ 20,850

* IMPORTANT POINT: Most home owners will use CHAIN FREE® (our offer of a Fall Back Price®) to secure their next house (recouping our 1% Fee) and will not need to take the Fall Back Price® because their Estate Agents had time to sell their old house.

You can’t wait to sell for your Asking Price and decide to take the Fall Back Price® (we need 5 days notice).

You instruct your solicitor to send us a Drawdown Notice (in this event we will re-instruct your Estate Agents to sell your house for a 1.5% Resale Fee).

IMPORTANT POINT: You pay off your mortgage with the Fall Back Price®, transfer your mortgage to the house you want to buy or apply for a new mortgage.