Why are the client's Expenses in the first year higher than in subsequent years?

This is only displayed where the client has an existing mortgage and there are scheduled repayments falling due between:

- The “Amount outstanding date”; and

- Client 1’s next birthday.

The system is designed in this way to keep the client’s net asset position accurate. If repayments due before the start of the first cashflow year were ignored, the outstanding mortgage balance would reduce, but there would be no corresponding cash outflow recorded. This would overstate the client’s net asset position, as the funds used to service the debt over those months would not be reflected in the cashflow.