“How much can I borrow for a mortgage?” is asked by almost everyone wanting to buy a house or homeowner interested in refinancing. In light of recent changes in the mortgage industry that have eliminated almost every easy-qualifying loan program, this question has taken on even more importance.
The two largest categories of mortgages are Conventional and FHA. Conventional loans have guidelines set by Fannie Mae and Freddie Mac. HUD, the department of Housing and Urban Development, determines FHA’s guidelines. In general, Conventional loans are harder to qualify for because they require larger down payments, higher income and better credit. However, the interest rates are the absolute lowest.
On the other hand, FHA loans are designed to give more flexibility and are easier to qualify for since they require smaller down payments, less income and lower credit. FHA interest rates are typically slightly higher than Conventional rates.
Conventional and FHA both have qualifying ratios calculated from a borrower’s income and debts. There are two ratios, the front or housing ratio and the back or debt ratio. The housing ratio is calculated by taking the proposed monthly payment of the new mortgage and dividing it by […]
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The essentials element of payroll administration in the UK is to accurately calculate the income tax and national insurance contributions deducted from the employee each pay period, produce payslips for each employee and account to the tax office for the payroll deductions.
Running a payroll system is natural for medium and large companies who may employ specialist payroll staff to perform these functions. Many medium companies may still choose to outsource the payroll function leaving many of the technical issues that might be encountered to a specialist payroll service.
Small businesses may choose to outsource the payroll function because they are not familiar with the paye system although HMRC do run seminars to assist employers. The payroll system not only calculates the tax and national insurance deductions but also has to deal with tax code changes, new employees and changes to existing employees plus taxable benefits and allowances such as statutory payments for sickness and maternity leave, contracting out of the state pension scheme and student loans.
The main benefit of manually producing the employee payroll is the reduced cost although the time spent on the payroll function by the proprietor may be better spent running the business. The cost may not be […]
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Newly graduated students are often concerned that they will struggle to get a mortgage once they start their first graduate job due to the large sums owing to the Student Loans Company. Whilst the debt has to be declared as a financial obligation on any mortgage application, underwriters do not pay great attention to it. The reason for this is the low levels of repayment required by the Student Loans Company.
Student loans are not recorded on your credit file, so there is no record of your repayment history, good or bad! This may be a bad thing if you are apply for credit from a high street bank or mortgage company for the first time as they may have no credit information on which to base their decision on.
Graduates in certain disciplines, such as medicine and law, have an advantage in that a number of high street mortgage lenders will let them take out a mortgage with a 5% deposit, rather than the 10% deposit the lenders will ask for from other first time buyers.
In recent years there has been an increase in the number of student mortgages taken out. Normally they are arranged on the basis that […]
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