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nargis123
Jan 31, 2017, 10:37 AM
Please can someone help me on this:

Bernie and Hilary have just married and currently live in a rent-free community in exchange for doing community chores and house repairs. They now plan to buy their own home and start a family. They aim to buy a two-bedroom flat in their local area. They have found out that flats such as these are currently on the market for £160,000. The general inflation rate is 2% a year but property-price inflation in their area is 6% a year. Both of these rates are expected to stay the same on average for the foreseeable future. The couple are confident they will be able to get a fixed interest-rate mortgage.

Explain the impact of inflation on their mortgage.

Curlyben
Jan 31, 2017, 10:42 AM
What do YOU think ?
While we're happy to HELP we wont do all the work for you.
Show us what you have done and where you are having problems..

ma0641
Feb 3, 2017, 01:45 PM
What is your understanding of a mortgage. Does the APR fluctuate? What are ARM's?

nargis123
Feb 6, 2017, 11:01 AM
I am not sure I am really stuck on this. I am not sure what impact the inflation will have on the mortgage

ma0641
Feb 6, 2017, 01:15 PM
Did you look up ARMs at least?
What do you know about mortgages? If you tell us nothing, we will not help unless you try.