Economics class: Yikes! What should I do with my mortgage?

This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.

Specification:

• Monetary policy, aggregate demand and aggregate supply, macroeconomic objectives

Click to listen to the podcast below and then answer the questions:

Yikes! What should I do with my mortgage?

• In recent months, how many consecutive base rate rises have we seen from the Bank of England?

• Explain what is meant by i) a mortgage; and ii) a remortgage

• Distinguish between i) a fixed-rate mortgage; ii) a variable-rate mortgage; and iii) a tracker mortgage

• Lenders standard variable rates range from 7.5 — 8 per cent. This comes at a time when many households are rolling off fixed-rate deals between 1 — 2 per cent. Using a diagram, analyse the effect on households’ budgets and the broader macro economy

Gavin Clarke, Emmanuel College