James almost lost his dream home due to a chain and had to take out an expensive bridging loan.
James had found his dream home and made an offer at far below asking price, which the seller finally agreed to because it had been on the market for a long time. But house prices were rising fast, and the seller was keen to seal the deal quickly and was frustrated at delays that James had in selling his existing home.
The seller put the house back on the market, believing that the below-asking-price he had agreed with James would find a cash buyer who could move quickly. Desperate not to lose the house he had fallen in love with, James took out a bridging loan from a bank, and from relatives, so he could quickly complete the purchase of the new house before he sold his old one. It was high risk, and meant that for six weeks he was heavily indebted. But it meant that he could buy the house he wanted, and sold his old house at a good price.
He closely monitored progress on both transactions, and had a plan B of renting out his old house in case his purchaser pulled out.