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?

Mortgages

Lesson outcome