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I'm looking at purchasing properties using the BRR model, but I will want to refinance them before the so called '6 month rule' of ownership. However, I would rather avoid buying the property using 100% cash through bridging finance if possible (due to the expensive nature of short-term finance). 


The podcast mentions Day 1 Remortgaging where you buy the property (typically BMV) and the surveyor agrees in principle what the house will be worth when refurbished to a high standard. Using numbers to illustrate:

Purchase price: £90k

Value once refurbished: £140k

Refurb cost: £20k  

Other costs: £5k 


Realistically the only other alternative appears to be standard bridging finance or a bridge to let, with the latter looking quite similar to a day 1 remortgage. 

I will also be purchasing through a SPV ltd company


- Can anyone who has actual experience with this shine some light for me please?

- Which brokers have you used in the past for these deals?

- Failing the above, which lenders understand these requirements? 


Thanks in advance! 

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Yeah, What Rob and Rob describe is basically bridge to let.

More info here, although this post is a bit old, the concept is the same.

The advantage of bridge to let is that you can:

  • Ensure the final value meets expectations before drawing down the bridge
  • Reduce the time on the bridge to 1 or 2 months depending on work schedule and avoid a full new mortgage application

The downsides are that the process isnt as quick as some bridging options, so buying at auction etc wouldnt be recommended. It does drastically reduce the risk of this kind of approach though.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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