Monthly Archives April 2010

How to Fix the Nations Deficit – You Decide!

As part of Channel 4’s ‘Alternative Election’ they have devised an online interactive application called ‘Chop or Not’ which allows members of the public to say what service areas of the budget they would ‘chop’ or ‘not’. http://chopornot.channel4.com/ No sign up is required and it’s designed so that it’s fun, quick and in the style of the popular ‘hot or not’ site. Everybody’s submissions are totalled and compared with your own results and you’re shown results ‘as you go’. The wider story is that through people playing the app, Channel 4 is building a picture of what the British people
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So this election….

I suppose it deserves a mention as there is no doubt it will have an impact on the finances of the country. I do however believe that politics and religion are two subjects which need to be discussed with care and it does not pay to take sides if it’s a quiet life you’re after. So, I’m not going to take sides but when diplomacy fails… The main reason for writing about the forthcoming election is not to mock the process or the candidates (ow! I’ve bitten my tongue already..) but instead to mention the effect that televising the debates for
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Mortgage Lenders & Income Multiples

For many years a multiple of earnings has been considered a way to gauge how much a mortgage lender will lend. For example, if a mortgage lender suggests they would lend 5x income, someone with a £10,000 salary would be able to borrow £50,000. In some instances this is still partly the case but to safeguard against overstretching individuals with high outgoings, most lenders will also now look very closely at the whole affordability picture. For example, Woolwich still use a 5x salary multiple as a guide but they also insist a borrower has a minimum amount of disposable income
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The Small Business Owner’s Mortgage Trap

Typically, self employed people wishing to obtain a mortgage require at least 2 years worth of accounts or, very solid business projections with an accountant’s letter or certificate. Small business owners who are the only director of their limited company are also considered self employed for mortgage purposes. Historically, to calculate how much an applicant can afford, mortgage lenders will use an average of the last 2 years figures and depending on the lender the figures will consist of: Salary + Dividends or Net Profit + Salary However if the net profit of the business has declined in the last
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