Or 3.25 times joint salary in a joint mortgage application, wile currently most banks will lend up to 75% of the property price on their best rate with penalties for higher percentages. Te penalty will be 1. 5age points if borrowing is up to 90% of the property value. Aam and Eve are getting married and decided to buy a flat to move into once they do. Yu have been given the following data: Mrtgage rates remains very low nowadays, te lowest rate now prevails is 1. 5 two year and for five year fix it is below 3% The Bank of England has been keeping at 0.
5 from March 2009 and they estimate that it would not have risen. Bsed on Eve’s salary of £42,500 p., she would get £106,250. S the total amount is £228,750. Bt when they jointly apply for mortgage they would get (£49,000+£42,500)*3.25=£297,375 which is £68,625 more than what they get individually together. Tis loan of £297,375 is 90% of £330,416 ie. S if they purchase around £330,000, tey would avoid of 1.
5 For this situation they can prefer minimum 1 bed room house which costs around £330,000. I Adam sells his present flat @£185,000 and subtracting his mortgage amount of £124,000, h would have £61,000 in his hand. Te savings of them are £45,000. I we add savings, te total amount would be £106,000. S £106,000+£330,000=£436,000 they can afford for purchasing 2 bed room house. I they apply for 25 year mortgage, te best deal to buy is 2 bedroom flat since after their marriage, tey would children they also need separate bed rooms.
Tis would ease the situation when the children are growing. O the other hand if they prefer 3 bedroom, 575,000 would become more burden for them to repay. Te best deal is to buy 2 bedroom house. Cnstruction of the factory and all additional infrastructure will take one year. Sles are expected to be £14million in year 2 (first year of sales), ad grow 10% in each of the subsequent three years after which they will stabilise; c Using NPV and ad assuming Velo expects to run this factory for 10 years, a which point it will decide whether to sell it or continue operating, mke a recommendation on whether My Velo should go ahead with the investment, icluding on whether it should sell or continue to operate the. ..
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