The dangers of a house buying chain breaking down – what to do and what not to do

When a chain breaks, don't panic and don't throw money at the problem. Find out exactly why it collapsed, because the cause decides the fix. If your home is sitting unsold, the issue is usually the price rather than the market, and too many agents win instructions by overvaluing homes they know won't sell at that figure. Get two or three independent valuations and be ready to adjust. If you've found a home you love, consider breaking the chain yourself by selling first and renting for a while, or favouring chain-free buyers even at a slightly lower price. As for bridging, my advice to most movers is to avoid it. Typical rates of around 0.8% a month work out at nearly 10% a year before arrangement, valuation and legal fees, on a loan secured against your home, with no idea when you'll sell. A bridging loan is only as safe as its exit, and a house that won't sell is not an exit. For the few with substantial equity and a realistic price it can work, but get whole-of-market advice first.

We are seeing more chains fail where things are taking so long. There are also a lot of properties stagnant on the market- this could be pricing, appeal or something else. A good agent should give honest feedback but also not over-price at the outset as this is the worst thing to do. Many people automatically go to the default option of re-marketing the property with the chain breaking but, in reality, there are lots of options which can still be explored to help them proceed. Sometimes, this is a lack of knowledge from the agents too as they can panic and knee jerk to relist. The best thing to do is speak to an experienced broker- they generally have multiple solutions that can be reviewed.

“A broken chain creates pressure to act quickly, but first establish what has failed and whether there is a realistic way to get the sale moving again.

“A bridging loan can buy time to complete an onward purchase. It cannot make an unsold home sell. If the repayment plan depends on achieving an asking price that has attracted little interest, extra borrowing could leave the owner with a growing bill and the same problem.

In Bridging Loan Directory’s reporting, delayed exits have brought additional interest and extension costs. Before committing, compare the full borrowing cost with alternatives such as reducing the sale price or renegotiating the onward purchase and timetable. Ask an independent broker to test what happens if the sale takes longer or achieves less. An extension should never be assumed.”

A broken chain is a domino problem as one failed deal can topple several transactions, leaving you out of pocket on legal fees and badly exposed. Act fast and above all, communicate. Find the cause with your agent and solicitor, negotiate down the chain to share any funding shortfall, re-market your home at a competitive price, and keep your seller informed. Don’t panic-withdraw and never exchange on a purchase before your sale is legally secured, otherwise you’d be bound to complete with no guaranteed funds. Bridging finance should be a last resort as the high monthly rates plus arrangement fees will quickly eat through the equity and if the sale drags, the loan gets expensive and lenders can repossess when the term ends. Better options include pricing off recent sold data, consider a Let-to-Buy mortgage to rent out your current home and release equity, and hold cash back for secondary legal costs.

A broken chain is stressful, but bridging should not be used to turn panic into expensive debt.

It can work brilliantly where the problem is genuinely timing: you have found the next property, your existing home is realistically saleable and there is enough equity and headroom to repay the bridge even if the sale takes longer or completes at a lower price.

What worries me is using bridging to avoid admitting the current home is overpriced. If the exit strategy is simply “someone will eventually pay what I want”, that is not an exit strategy.

Before borrowing, review the asking price, agent, buyer feedback and whether another mortgage structure could work.

A bridge can solve a broken chain. It cannot fix a broken valuation.

Bridging is very much a sticky plaster. In most scenarios, chains break for a reason and fixing these should be number one priority. A vendor should get their lawyer onboard at marketing stage to highlight any legal issues early and speed up the process once a buyer is found. They should also do their research on estate agents, don’t go for the highest valuation, go for the agent with a track record of selling quickly in the area. Assemble the best professional team, get the deal done quickly, and reduce the risk of fall through dramatically

If your chain breaks, work out what each month of waiting for a new buyer costs you, because that's the number to weigh against a price cut. If the house still won't sell, I wouldn't take a bridging loan, and the interest isn't the only new bill. Once you've moved into the next home, the furnished house you've left usually counts as a second home in England. Where the council charges the second homes premium, that can mean up to twice the normal bill, and unlike an empty home there's no year's wait before the premium can start. So tell the council it's on the market. You may not have to pay the premium while it's actively marketed for sale, but only until it's been on the market a year, counting any months before you moved out. The normal bill still applies, and councils can look at whether the asking price is fair. Leave it furnished and skip that call, and you could be paying up to double on a house you're trying to sell.

Losing a purchase is upsetting. Taking on borrowing you cannot comfortably repay could be far worse.

If your chain breaks, get your estate agent, solicitor and mortgage adviser talking early. Establish what can be rescued, check your mortgage offer’s expiry date and work out how any delay changes your budget.

Bridging deserves specialist advice and a repayment plan that still works if the sale is delayed or the price falls. The question is not simply, “Can we fund the purchase?” It is, “Can we cope if the next step goes wrong?”

Set a financial limit before the pressure builds. Sometimes renegotiating, waiting or walking away is the decision that protects your next move.