If the LTV is 80% for a buy-to-let mortgage, and the couple can find 鎷?0,000 themselves how much can

James and Sarah wish to buy a property that will be used for student lets. Assuming that they can find 鎷?0,000 from their own resources, what is the maximum sum that they can potentially borrow from thie lender, applying the standard percentage of loan to propertyvalue of 80%. The most important part I am looking for is the working out.

A 鎷?60,000

B 鎷?00,000

C 鎷?26,667

D 鎷?60,000

If the LTV is 80% for a buy-to-let mortgage, and the couple can find 鎷?0,000 themselves how much can they lend

The down payment is 20%. Therefore 鎷?0,000 / .2 = 鎷?00,000 for the total purchase price and 鎷?60,000 for the mortgage. Your answer is A.

If the LTV is 80% for a buy-to-let mortgage, and the couple can find 鎷?0,000 themselves how much can they lend

鎷?0,000 would be 20%, so multiply this by 4 to get 80%. So loan would be 鎷?80,000

If the LTV is 80% for a buy-to-let mortgage, and the couple can find 鎷?0,000 themselves how much can they lend

They could borrow 鎷?60,000 (4x 鎷?0,000) making the total purchase price 鎷?00,000

If the LTV is 80% for a buy-to-let mortgage, and the couple can find 鎷?0,000 themselves how much can they lend

Deposit / 20 * 100 = Purchase Price

Purchase Price / 100 * 20 = Deposit Required

Purchase Price / 100 * 80 = Loan Required

Loan / 80 * 100 = Purchase Price

(and the above answer is A 鎷?60k borrowed, 鎷?0k deposit)

This reads like it is homework !