$3$ When the lending manager speaks to Wade he indicates that he wishes to extend his house. With the business expanding and the children growing they are just running out of space. He needs to add an office, a storage room and an additional bedroom. This will cost $50,000$ to complete. He and Vanessa plan to contribute

$15,000$ from their ISAs and are looking to the Bank to increase their mortgage facilities by $35,000$ for the remainder of the term of the mortgage.

The lending manager asks you complete the following activities for her.

$($a$)$ Based on the information you have, consider whether this is an affordable proposition for Wade and Vanessa. Analyse the information you have about their personal finances and explain whether you think it is an affordable lending proposition or not. In your answer, please detail:

$($i$)$ any industry codes you have followed

$($ii$)$ the assumptions you have made in reaching your conclusion.

$($b$)$ While assessing this proposition the lending manager states that you must consider a number of other factors$/$questions that she may need Wade and others to provide her with additional information. She asks you to prepare a list of questions she will need answered to get her the additional information she requires. For each question, she wants you to indicate:

$($i$)$ What the question is$?$

$($ii$)$ Who should give the answer?

$($iii$)$ Why the question should be asked $$ in other words why would the Lender want this information?

$($iv$)$ What sort of answer would the Lender consider to be satisfactory?