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
- £375,000
- Loan type
- Buy-to-let
- Property type
- Flat
- Illustrative price
- £500,000
- Contribution to price
- £125,000
- Illustrative loan-to-value
- 75.0%
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
A landlord is considering a £500,000 flat with a £125,000 price deposit and a proposed £375,000 loan. The advertised rent looks attractive, but the service charge, management costs and periods without a tenant have not been built into the monthly plan.
The question behind the loan
A gross rental estimate is not the same as money available after costs. The landlord also has personal earnings, but these should not be treated as an automatic solution to a shortfall. Both the property budget and any individual mortgage assessment need the complete information.
Information to bring together
- An evidenced rental estimate and any existing tenancy terms.
- Service-charge statements, ground rent where applicable and planned works.
- Management, maintenance, insurance and void-period assumptions.
- Personal borrowing and the reserves available if rent or costs change.
Where the assessment goes next
Build a realistic operating budget and test the effect of lower rent or higher costs. A smaller loan, different price or different property may be the next discussion. This illustration does not publish a rental-cover threshold or promise that earned income can supplement rent.
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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