Pupils consider a mortgage application and the impact that different-sized deposits have on interest rates and repayments.
Scenario
Sam is hoping to get on the property ladder and purchase his first home. To do this, Sam will need to apply to a bank for a mortgage, which is a loan provided to people who are buying property. As banks will not lend the full amount required to buy a property, Sam will need to demonstrate that he has enough savings to put down a deposit of 5% to 10% of the property’s value in order to secure a mortgage.
Curriculum references
| National Curriculum 9 | Define percentage as number of parts per hundred, interpret percentages and percentage changes as a fraction or a decimal, and interpret these multiplicatively; express one quantity as a percentage of another; compare two quantities using percentages; work with percentages greater than 100%; solve problems involving percentage change, including percentage increase/decrease and original value problems, and simple interest including in financial mathematics. |
| OCR 2.03b | Understand percentage is ‘number of parts per hundred’. Calculate a percentage of a quantity, and express one quantity as a percentage of another, with or without a calculator. Increase or decrease a quantity by a simple percentage, including simple decimal or fractional multipliers. Apply this to simple original value problems and simple interest. Express percentage change as a decimal or fractional multiplier. Apply this to percentage change problems (including original value problems). |
| AQA Edexcel R9 | Define percentage as ‘number of parts per hundred’. Interpret percentages and percentage changes as a fraction or a decimal, and interpret these multiplicatively. Express one quantity as a percentage of another. Compare two quantities using percentages. Work with percentages greater than 100%. Solve problems involving percentage change, including percentage increase/decrease and original value problems, and simple interest including in financial mathematics. |