# Mortgages

## Lesson details

### Key learning points

1. In this lesson, we will learn about the general principles of mortgages and mortgage loan repayment.

### Licence

This content is made available by Oak National Academy Limited and its partners and licensed under Oak’s terms & conditions (Collection 1), except where otherwise stated.

## Video

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## Worksheet

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## Starter quiz

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### 5 Questions

Q1.
If a person earned £30,000, they would pay no income tax.
True
Q2.
In the UK (as of July 2020), you can earn £12,500 and pay no income tax.
False
Q3.
If I earned £9,000 per year, how much would I pay in income tax?
£1,800
£3,600
£4,050
Q4.
If an individual earned £35,000 a year, how much income tax would they pay?
£0
£14,000
£7,000
Q5.
If an individual earned £130,000 a year, how much income tax would they pay?
£42,000
£60,000
£67,500

## Exit quiz

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### 5 Questions

Q1.
A mortgage is a debt that must be repaid, with interest, as a result of purchasing a house.
False
Q2.
If you had a mortgage, you would prefer to have a high interest rate.
True
Q3.
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).
£104,000
£120,000
£520,000
Q4.
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).
£574,000