Mortgages

Maths

Finance

A mortgage is a debt that must be repaid, with interest, as a result of purchasing a house.

If you had a mortgage, you would prefer to have a high interest rate.

If I borrowed £100,000 in the form of a mortgage at a rate of 4% per year interest for 5 years, how much would I pay back at the end? (Assume compound interest, no payments made until the end and the answer is rounded to the nearest pound).

If I borrowed £350,000 in the form of a mortgage at a rate of 3.2% per year interest for 20 years, how much would I pay back at the end? (Assume compound interest, no payments made until the end and the answer is rounded to the nearest pound).

£120,000 mortgage that had a rate of 3% for 25 years

£200,000 mortgage that had a rate of 0.5% for 35 years

Which would cost more? A £200,000 mortgage that had a rate of 0.5% for 35 years or a £120,000 mortgage that had a rate of 3% for 25 years?

If a person earned £30,000, they would pay no income tax.

In the UK (as of July 2020), you can earn £12,500 and pay no income tax.

If I earned £9,000 per year, how much would I pay in income tax?

If an individual earned £35,000 a year, how much income tax would they pay?

If an individual earned £130,000 a year, how much income tax would they pay?

This lesson will be removed by end of Summer Term 2025.

Mortgages

Lesson outcome

This lesson will be removed by end of Summer Term 2025.