Test. Buying a house

Before proceeding to the solution of examples and problems be sure to read the theoretical part of the lesson 

Buying a house

 1. Dan wants to buy a house for £140,000. He earns £35,000 each year. A building society will give him a mortgage of 3.5 times his annual (yearly) salary. How much mortgage can Dan get?

 а)  £122530;       

 б)  £122500;     

 в)  £122580;       

 г)  £122510.

 2. Dan wants to buy a house for £140,000. He earns £35,000 each year. A building society will give him a mortgage of 3.5 times his annual (yearly) salary. How much more money does he need to buy the house?

 а)  £17500;      
 б)  £17560;     

 в)  £17510;      
 г)  £17480.

 3. Dan wants to buy a house for £140,000. He earns £35,000 each year. A building society will give him a mortgage of 3.5 times his annual (yearly) salary. Stamp duty is 1% of £140,000. The solicitor and surveyor bills amount to £2000. How much money will he really need to have saved to buy this house if he takes the full mortgage?

 а)  £20935;      
 б)  £20970;       

 в)  £20900;      
 г)  £20910.

 4. Jim and Hannah have saved £40,000. They earn £30,000 between them each year. A bank will give them a mortgage of 4 times their joint annual salary. How much mortgage can they get?

 а)  £120050;     

 б)  £120010;     

 в)  £120060;     

 г)  £120000.             

 5. Jim and Hannah have saved £40,000. They earn £30,000 between them each year. A bank will give them a mortgage of 4 times their joint annual salary. They want to buy a house for 1£55,000. Stamp duty is 1%. The solicitor and surveyor bills amount to £2800. Can they afford this house? How much money will be left over if they take out the full mortgage?

 а)  no, £620;     

 б)  yes, £650;     

 в)  no, £650;     

 г)  yes, £620.

 6. Donna sells her flat and makes £73,000 profit. She earns £27,000 each year. A bank will give her a mortgage of 3.5 times her annual salary. What is the most money she will have available to buy a hew property?

 а)  £167550;     

 б)  £167545;     

 в)  £167500;     

 г)  £167560.

 7. Donna sells her flat and makes £73,000 profit. She earns £27,000 each year. A bank will give her a mortgage of 3.5 times her annual salary.

Is she bought a house for this amount of money, how much stamp duty would be payable at 1%?

 а)  £1675;      
 б)  £1670;     

 в)  £1685;      
 г)  £1678.

 8. 4 friends want to buy a house together. They can jointly raise a mortgage of £240,000 and have a total deposit of £41,000.

They buy a house costing £268,000. Stamp duty is 3%. The solicitor and surveyor bills amount to £3420.

How much money will they have left over if they take out the full mortgage?

 а)  £1550;      
 б)  £1542;     

 в)  £1548;      
 г)  £1540.

 9. Laura earns £26,000 each year and Bruce earns £19,000. They can both get a mortgage of 3,5 times their salary. How much mortgage can Laura get?

 а)  £91060;      
 б)  £91035;       

 в)  £91000;      
 г)  £91090.

10. Laura earns £26,000 each year and Bruce earns £19,000. They can both get a mortgage of 3,5 times their salary. How much mortgage can Bruce get?

 а)  £66550;      
 б)  £66500;     

 в)  £66525;      
 г)  £66580.

11. Laura earns £26,000 each year and Bruce earns £19,000. They can both get a mortgage of 3,5 times their salary. They have a joint deposit of £33,000. They buy a property costing £182,000. Stamp duty is 1%. The solicitor and surveyor bills amount to £2950. What is the lowest joint mortgage they would need to take out?

 а)  £153790;       

 б)  £153720;     

 в)  £153760;     

 г)  £153770.

12. Peter and Sonia can rent a flat for £560 each month. They could buy a similar flat and the monthly mortgage payments would be £560. Discuss with your teacher the advantages and disadvantages of buying the flat compared to renting the flat.

 а)  to buy a similar flat;     

 б)  ;     

 в)  not to buy a similar flat;     

 г)  .