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Mortgage case study
Sozedaghost
Posts: 1 Newbie
As a new mortgage broker i came across a case study and i am very interested in others opinion and what they would recommend in this case
John smith is a self employed barrister working within Redwall Chambers for the last 10yrs. His net profit for the last 3yrs has been £160000, £100000, £120000 and has a projection for this year at £140000.
John (aged 45) is married to Jane (aged 40) and they have two children David & Chloe (aged 11).
Jane is a solicitor earning a basic salary of £75000p/annum. She works for AD solicitors and has been employed for 10yrs.
They own their property in London, a 4 bedroom Semi detached house in Balham currently worth £800000. They have a £200000 repayment mortgage with Halifax plc paying the variable rate of 2.5%.
They have approximately 10k p/mth in net income and are spending £4000 p/mth on their living expenditure etc. They would like to buy a 2nd home in Brighton for £750000.
John & Jane have £100000 in savings (mixture of cash & ISA's). They have no protection other than Jane who has employee benefits of 4 x DIS, 3 mths full sick pay and family BUPA.
The children will be going to private school in Brighton, at a cost of £18000 p/annum, from sept 2011. Jane intends to carry on working and will be supported by her mother regarding the children.
They are unsure about interest rates and are unsure on the best mortgage solution and have approached you to advice them on the best and most cost effective solution. They believe that £30000 will be needed to improve the property to their liking.
How can John & Jane purchase their 2nd home, what do you believe will be the most cost effective solution and why? and what other important suggestions would be included in your recommendations as their adviser?
I would be very grateful for answers in order to increase my knowledge thank you......
John smith is a self employed barrister working within Redwall Chambers for the last 10yrs. His net profit for the last 3yrs has been £160000, £100000, £120000 and has a projection for this year at £140000.
John (aged 45) is married to Jane (aged 40) and they have two children David & Chloe (aged 11).
Jane is a solicitor earning a basic salary of £75000p/annum. She works for AD solicitors and has been employed for 10yrs.
They own their property in London, a 4 bedroom Semi detached house in Balham currently worth £800000. They have a £200000 repayment mortgage with Halifax plc paying the variable rate of 2.5%.
They have approximately 10k p/mth in net income and are spending £4000 p/mth on their living expenditure etc. They would like to buy a 2nd home in Brighton for £750000.
John & Jane have £100000 in savings (mixture of cash & ISA's). They have no protection other than Jane who has employee benefits of 4 x DIS, 3 mths full sick pay and family BUPA.
The children will be going to private school in Brighton, at a cost of £18000 p/annum, from sept 2011. Jane intends to carry on working and will be supported by her mother regarding the children.
They are unsure about interest rates and are unsure on the best mortgage solution and have approached you to advice them on the best and most cost effective solution. They believe that £30000 will be needed to improve the property to their liking.
How can John & Jane purchase their 2nd home, what do you believe will be the most cost effective solution and why? and what other important suggestions would be included in your recommendations as their adviser?
I would be very grateful for answers in order to increase my knowledge thank you......
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Comments
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That doesn't look like a case study... it looks like an exam question!0
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If I were you, I'd register on Cherry and run it past the practitioners on there. So many soft facts are missing it would take ages to cover all the "what ifs."I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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That doesn't look like a case study...0
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Needs moving to the Student forum.Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0 -
Homework eh?Sozedaghost wrote: »How can John & Jane purchase their 2nd home, what do you believe will be the most cost effective solution and why? and what other important suggestions would be included in your recommendations as their adviser?
I would be very grateful for answers in order to increase my knowledge thank you......
Put up your own answer and see whether others agree. Anyone here is up for a discussion, if you state an opinion and show yourself willing to engae, but I don't see people doing your homework for you. As a 1 post newbie, you will probably never post again, even if someone gives a really good answer to your case study.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
A solictor and a barrister how nice perhaps we could ask the government to pay the interest on there second home for them0
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I would recommend buying a BTL in central London, as we all know housing prices are on the increase, guaranteed.
(Joke)Feb 2012 - onwards MF achieved
September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
April 2018 down to 28.00 months vs 30.04 months at normal payment.
Predicted mortgage clearing 03/2047 - now looking at 02/2045
Aims: 1) To pay off mortgage within 20 years - 20370
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