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
- £525,000
- Loan type
- Residential purchase
- Property type
- House
- Illustrative price
- £700,000
- Contribution to price
- £175,000
- 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 sole trader has completed a first full trading year and is exploring a move into a London house. The asking price is £700,000, with £175,000 earmarked as the price deposit and a proposed £525,000 mortgage. The buyer has not yet separated the cash needed for tax, purchase costs and a business reserve.
The question behind the loan
The first accounts show one period of trading; they do not establish a stable future income or a borrowing entitlement. The discussion needs to connect the accounts with current trading, the buyer’s earlier experience, household commitments and the cash that can actually be used personally.
Information to bring together
- Completed accounts and tax information, with an explanation of when trading began.
- Recent business activity and bank statements through an agreed secure channel.
- Personal commitments, tax still payable and the reserve the business needs.
- The house listing, condition, tenure and realistic purchase timetable.
Where the assessment goes next
A useful next step is to reconcile the business and personal figures before selecting an application route. If the evidence is too early or the usable deposit is lower, the budget or timing may need to change. This example does not state a minimum trading-history rule or confirm that the requested borrowing is available.
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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