Guides4 min read
How to use a BRRR calculator on a UK refinance
A BRRR model is useful when the question is cash left in after refinance, not the yield on day one.
Buy, refurbish, refinance, rent only works if the new valuation and LTV release more cash than you leave in the deal.
Purchase yield ignores refinance. Cash left in after the new mortgage is the number that funds the next property.
Stress the refinance. A 75% LTV on a hopeful valuation is not the same as a lender’s figure after works.
Include works, stamp duty, and product fees in cash in. Leaving them out makes every BRRR look cheaper than it is.
Compare cash-on-cash after refinance with the same deal held on the original mortgage before you treat the capital as recycled.