Chain-break services

Journalist: Anna Sagar, Mortgage Solutions / Specialist Lending Solutions

ended 26. April 2022

Looking to speak to mortgage brokers about chain-saving services. 

  1. Have you seen more chain breaks over the past few months?
  2. Have more borrowers been inclined to use chain saving services?
  3. What are the benefits and downsides?
  4. Would you recommend them and what should borrowers keep in mind?

1 responses from the Newspage community

Star Quote
1." We saw a sharp increase in chain breaks over the first lockdown however these seem to have quietened down since. Overall, I would still say we are seeing more now than pre-lockdown. 2. "Yes we believe more borrowers have been inclined to use a chain saving service to ensure they can secure a property, as the property market has been so competitive for buyers anything that will give them the edge such as being chain-free has really been an advantage to them being able to win the property over a buyer applying for a standard mortgage. 3. "The benefits of a chain saving service are that you can secure the property you want, and you are more likely to have your offer accepted because the seller can ensure a quick sale. The downsides are that It can be more expensive with rates from 0.5% per month in comparison to a standard mortgage where rates are 2-3% per year. 4. "We would recommend them if needed, but what is absolutely vital to keep in mind is that they are short-term finance products and before applying, you should make sure you have an exit route to repay the loan in full after the 12-24 month term."