The people, amounts, property and circumstances are invented to explain a borrowing brief. No lender, rate, approval, completion or client outcome is claimed.
- Loan requested
- £490,000
- Loan type
- Buy-to-let
- Property type
- HMO
- Illustrative price
- £700,000
- Contribution to price
- £210,000
- Illustrative loan-to-value
- 70.0%
The price contribution excludes taxes, fees, interest, works and other transaction costs. Those need a separate budget. The ratio illustrates arithmetic, not lending criteria or eligibility.
The borrower’s brief
An existing homeowner wants to buy a shared rental house for £700,000. The proposed price deposit is £210,000 and borrowing £490,000. It would be the buyer’s first HMO, with management intended to be handled by a local agent.
The question behind the loan
Ownership of a home does not demonstrate experience of running a shared rental property. The actual use, occupancy, planning and local licensing position need professional checks for the particular address. A management-agent proposal should explain the work and costs it covers.
Information to bring together
- The address, room arrangement, present occupancy and existing tenancy records.
- Local-authority licensing and planning information checked by the appropriate advisers.
- Management responsibilities, operating costs and maintenance reserves.
- Experience, deposit evidence and the buyer’s other financial commitments.
Where the assessment goes next
Establish what is being bought and who will manage it before relying on projected rent. Unresolved permissions, property condition or an unrealistic budget could change the plan. No rule about first-time landlord acceptance or HMO borrowing is stated here.
Discuss your own circumstances
A similar loan amount or property type does not mean the same finance is available. Income, commitments, credit history, the property and current terms need an individual assessment. Tell Jack what you want to achieve and any part of the plan that remains uncertain.
Prepared for Jack Cousins, Head of Mortgages at Lockhart Murphy. Updated 10 November 2026.
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