You were appointed, on 1 October 2021, as a mortgage adviser by a building society. A...

 

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You were appointed, on 1 October 2021, as a mortgage adviser by a building society. A customer in his thirties is purchasing a house and has asked you for advice on the mortgages. The purchase price of the property is £320,000. The customer has savings of £120,000 and has regular household incomes of £2,500 per month in the foreseeable future. The customer is interested in capital and interest repayment mortgages and is considering the following options: Option LTV Mortgage term (yrs) 60% 1 2 70% 3 70% 4 80% 20 25 25 30 Interest rate (per annum) 1% for the first 5 years, 3% thereafter 2% for the whole mortgage term 1.5% for the first 5 years, 2.5% thereafter 3% for the first 5 years, 1% thereafter You can ignore all the other charges and fees. Fees (£) 1,500 500 500 1,000 Write a report detailing your advice and recommendations. The mathematical methods, calculations and assumptions used should also be described. You were appointed, on 1 October 2021, as a mortgage adviser by a building society. A customer in his thirties is purchasing a house and has asked you for advice on the mortgages. The purchase price of the property is £320,000. The customer has savings of £120,000 and has regular household incomes of £2,500 per month in the foreseeable future. The customer is interested in capital and interest repayment mortgages and is considering the following options: Option LTV Mortgage term (yrs) 60% 1 2 70% 3 70% 4 80% 20 25 25 30 Interest rate (per annum) 1% for the first 5 years, 3% thereafter 2% for the whole mortgage term 1.5% for the first 5 years, 2.5% thereafter 3% for the first 5 years, 1% thereafter You can ignore all the other charges and fees. Fees (£) 1,500 500 500 1,000 Write a report detailing your advice and recommendations. The mathematical methods, calculations and assumptions used should also be described.

Answer rating: 100% (QA)

Option 1 L TV 60 M ort gage term 20 years Interest rate 1 for the first 5 years 3 thereafter F ees 1 ... View the full answer