Buy To Let - James' story

James, an accountant, has an annual salary of £30,000. His wife Jenny earns £20,000 as an office administrator. James has recently inherited £40,000. He's keen to use the money to provide some regular additional monthly income.

undefinedJames has looked at the numerous savings and investment options available to him but he's decided that he'd like to invest this money in bricks and mortar instead. He found a property in his town near the railway station that he believed he could easily rent out, probably to a professional that commuted.

It was on the market for £140,000 but because he had no experience of being a landlord he wasn't sure what he could borrow or what options were available to him. James and Jenny's own home is mortgaged, but with payments up to date and a clean credit record, we were able to lend these first time landlords £105,000 on a purchase price of £140,000.

James' mortgage looks like:
Property price value £140,000
Mortgage amount £105,000
Loan to value 75%

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