The bank is offering customers the chance to lock in for two years at an interest rate of 0.99%, but they need a deposit of at least 35% and will pay a product fee of £1,499.
The question then is, is this cheaper that most people can currently get? How much cheaper.
It seems like a lot! I’ve done a quick graph in DUDAMATH here comparing debt after 2 years between the new mortgage and a typical no-fee 1.89% mortgage. I’ve used x to represent the amount that you’re borrowing.
Stuff like this is good.
- It’s nice to demonstrate that the maths we do has real world applications. Solving equations links to mortgages.
- It’s nice to show all the different maths I’ve used here. Forming equations is useful when plotting graphs and comparing data. You can also see why I’ve plotted the graph. It gives a much nicer and easier to read handle on the financials when compared to the article.
- Teaching this in a lesson I could vary the interest rate using DUDAMATH. We could investigate at which point the 0.99% deal is better than a y% deal.