Deal Sourcing Mortgages

How to Invest in UK Property with no Money Down in 2021?

Is it really possible to invest in a property without putting any money down? Much has been said about zero down payment loan programs, and if you’ve heard it, you probably want to know about how they work. 

With a remarkable growth in rental property demand in the last few years, a lot of people are investing in these properties with very optimistic returns. But if you’re short on money, that doesn’t mean your chances are out of reach. 

Actuall, most people either don’t have enough money for a down payment or simply don’t want to put all their money for the purchase of a property.

So how can you buy a home with no down payment? Here’s everything you need to know:

How to Invest in UK Property with No Money Down

When you have to put 20% cash down on a property, there’s a lot less of your cash accessible to you for when you need it. When you get a call from your renter about an oven emergency, having this money is crucial. But it’s important to observe that in most cases a renter won’t just give you money with no money down. The truth is, the money has to come from somewhere. In order to invest in UK Property with no money down, there are a couple of ways to do it:

1. Borrow the Money

One of the most simple no money down strategies to take is borrowing the money from someone. When you’re getting money from a person you know and trust, it’s much simpler to negotiate softer, more terms, like for example no payments for the first year or no interest. Friends, family, or co-workers might have extra money and are looking for return on investment. 

You have to consider that, these loans should be secured by a loan contract establishing all the details (the amount borrowed, repayment terms, and the lender’s recourse if you are unable to repay, so that both sides are protected). Make sure to protect your relationships and establish the terms of the loan upfront.

2. Acquire a  Mortgage

Not all mortgages are assumable, but if you consider the options when getting into an investment, it could offer a way to not only avoid a big down payment, but also lower your interest rates and costs.

With this option, the client steps into the seller’s current mortgage, taking the current interest rate. And unlike a new mortgage where closing costs can amount to several thousand dollars, assumable mortgages often impose limits on assumption-related fees, saving you even more money.

3. Look for Below Market Value Properties

In case you are looking for BMV properties, there are a lot of proptech software where you can find them. One of the best-known is DealSourcing. This proptech software has been able to automate this process and create a platform that becomes your very own property sourcer. Through algorithms and the power of automation, the platform is able to find properties from all across the internet and sort them by ROI. 

It saves you time, money and energy! The key feature of this platform is to find High Yield properties. It’s a no brainer to have if you are looking to BMV properties.

The software also calculates the return on investment for every property on Rightmove and locates below market value properties for sale, saving investors hours of time spent on research. 

4. Seller Financing

Another option many people aren’t conscious of is a seller financing. In this case, the seller of the property directly finances the buyer as part of the purchase deal. They provide the buyer a loan to purchase their property, while the buyer gives a financing instrument to the seller as proof of the loan, which is commonly written down in public records to protect both sides.

While purchase-money mortgages are a popular class of financing, it requires looking for encouraged sellers who are ready to finance their property. But one of the advantages about seller financing is that the buyer can choose from plenty of loan terms and payment options based on the seller’s choice. 

Brought to you by puts the power of automation in your hands. Search over 200,000+ Below Market Value deals (Buy-To-Let, HMOs and BRRR) with ROIs above 15% with the click of a button. Find High Yield properties with our efficient and easy-to-use tools.

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