Fred has just started his new

timer Asked: Dec 16th, 2015

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Fred has just started his new job with an annual salary of £28,800, and is now thinking of buying a house.   After tax and National Insurance is deducted his take-home pay is £22,670.  The mortgage company will not take into account his bonus or his self-employment.  How much can Fred afford to pay in monthly mortgage payments? If interest rates are 5% and Fred takes out a 25-year mortgage, the monthly payment for £100,000 loan would be £584.60.  How much could Fred actually afford to borrow?           

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