According to research from the Halifax*, buying is still cheaper than renting.
Their research found that, for a First Time Buyer, the average monthly costs for purchasing a three bed in the UK was lower than for someone paying rent on the same property type. In fact, the costs associated with a mortgage for a three bed in the UK was £666 a month compared to £722 a month for renting a comparable property.
What this means for home buyers
Adam Nanson, Managing Director from Your Mortgage Expert comments:
“Unsurprisingly, it remains more cost effective in the short term to purchase a property rather than rent. And, with a repayment mortgage, home buyers will be paying back their loan, which means it remains the sensible long-term decision too. Meaning that, providing all payments are made on time and in full, the home buyer will have the benefit of owning their property outright at the end of the mortgage term.
“But with the cost of homes increasing in value over the last year, the gap between renting and buying is narrowing (with the difference decreasing from £85 to £56 over the last year*) it may be prudent for those thinking of purchasing in the future to act now rather than be priced out of the market later.”
How Your Mortgage Expert can help
“With all types of property increasing in value over the last year, it’s more vital than ever than home movers and home buyers understand their budget prior to commencing their house hunt. This will help them look at appropriate properties and to know what they can afford before putting in an offer.
“A Mortgage Broker such as Your Mortgage Expert, will review your circumstances and give you the most suitable mortgage rate advice for your affordability. They will also help you secure an agreement in principle which is a useful thing to have prior to commencing negotiations.”
Your Mortgage Expert is whole of market and independent which means we know all the current deals and can make the most suitable recommendation for you based on your circumstances. Some of the deals may only be available through independent mortgage advisers.
To speak to Adam Nanson about your next mortgage, ring him now on 01722 322683 or complete a contact us form and let him know when he can call you back.
We don’t charge for an initial consultation, so by speaking with us, you won’t be under any obligation. To find out more about our services and how we operate, visit our about us section.
The information contained within this article was correct at the time of publication. It is intended for information only and does not constitute advice. TenetLime cannot be held responsible for information that was correct at the time of publication but subsequently changes or goes out of date due to changes in legislation. For further information, contact Your Mortgage Expert on 01722 322683.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.