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BRR without owning own home


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Hi guys,

Myself and my partner have around £60k to invest (savings/inheritance) and would like to go down the BRR route to put that money to work. We have heard obtaining a BTL mortgage will be difficult if we do not own our own home? I do not want to sink the money and not be able to recycle the majority back out for another investment.

Is it sensible to be looking at BRR instead of a home for us? We live/work in SW London, are both Ltd co directors and rent a good place for below market value.

Thanks!

 

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As you've said you will struggle as to get BTL mortgage without having own residential. 

 

But if you're wanting to do a BRR you could look at paying cash then putting on to a BTL from there - think it's a little different if you've 'owned it' versus buying it with a mortgage.

 

Could also look at bridge to let - but I'm by no means an expert on that area.

 

As a different question - I ask this to everyone I see talking around this - why would you not want to secure you & your partner with your own home first?

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Thanks Adam,

I think I am going round in circles really with the best thing to do. As we both have kept our incomes low trying to build our businesses a residential mortgage will be impossible to obtain for what property costs in the area (or even anywhere close!). I like the idea of recycling the money through BRRR and giving us an oppertunity to hedge our incomes with rental yeild, but perhaps a straightforward flip would be better to increase the pot for a personal home.

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On 12/14/2020 at 7:24 PM, matt_a said:

 

Myself and my partner have around £60k to invest (savings/inheritance) and would like to go down the BRR route to put that money to work. We have heard obtaining a BTL mortgage will be difficult if we do not own our own home? I do not want to sink the money and not be able to recycle the majority back out for another investment.

 

Obtaining a buy to let mortgage is possible if you don't own your own home. But not all lenders will lend to you. 

Once your property has been refurbed and is tenanted, then there shouldn't be any trouble in getting a mortgage

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