Anita is a manager with a large retail company. She is aged 27. Her current annual salary is £45,000. Since Anita started work, she has paid off her student overdraft and has built up some savings. She is now in the process of buying her first property. She has received an offer from a lender to loan her £210,000 towards the purchase of a house on which Anita has made an offer of £240,000 (the market value). Anita’s student loans currently amount to £28,000, and she also has a bank loan of £4,500 she took out to buy a car two years ago. The loan is being repaid over 4 years. Anita is concerned about her overall level of borrowing, particularly once her mortgage is in place. She believes her well-paid job is secure for the foreseeable future.

Required: 

Prepare a schedule of Anita’s borrowings, listing them in order of increasing APR and discuss the likely terms of her various loans and whether she should be concerned about her overall level of debt.