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To rent or to buy?

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An interesting rate

The following table shows interest rates that a mortgage provider may have offered to Sara and John.

Which is the highest interest rate that will enable the mortgage to still be cheaper than renting over 25 years?

Interest rate Per month5% £500

6% £550

7% £600

8% £660

9% £720

10% £775

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Rental increase

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Ever changing finances

Tom and Emily rent a property for £750 a month.

If their rent rises by 5% every 5 years, how much will they be paying a month in rent in 25 years?

They had an option to buy a different house for £100,000.

This would have cost them a 10% deposit and their mortgage payments would have been £725 a month over 25 years.

Which is the better deal? Show your working.