Taylor Scott International News
Buying is cheaper than renting in every area of the UK, especially in London where rent prices are 56% higher than the average, new research shows. Indeed, potential first time buyers would have lower monthly outgoings if they bought a property than they do renting with average monthly rental prices now surpassing those for the average mortgage repayment. According to the research from Santander Mortgages would be buyers could save themselves £2,300 a year if they were able to purchase their own property. The average monthly rent in the UK is currently £995 per household compared to monthly repayments of £805 for the average first-time buyer household, meaning homeowners could save an average of £190 a month or £2,300 a year. Prospective first time buyers in the South West could make the biggest monthly savings by making the switch from renting to property ownership as average monthly rents exceed mortgage payments by over £192. First time buyers in London would see themselves £179 better off per month. At the other end of the scale are those living in the East of England, where typical first time buyer monthly mortgage payments exceed average rents by only £2. A further breakdown of the figures shows that in Scotland buyers would be £157 better off, in Wales £127, in the North West £121, in Yorkshire and the Humber £113, and in the West Midlands £102. But elsewhere they would be less than £100 better off. In the East Midlands the difference between rent and mortgage was £88, in the North East £83 and in the South East just £28. The research found the average price across the country to be £212,610. This means that a buyer with a 21% deposit, the average deposit size for a UK first time buyer would require £44,648 in order to get on to the property ladder. ‘People assume that buying a property will put them under greater financial pressure, but often the reverse is true. With annual savings averaging well over £2,000, this can really mount up over time and of course once the mortgage is paid off you have a valuable asset to show for it,’ said Miguel Sard, managing director of mortgages at Santander UK. ‘Many prospective first time buyers see the cost of saving for a deposit as prohibitive, but there are many deals available for smaller deposits. Buying a property is a big financial commitment and there are upfront costs to consider, but over the long term the financial benefits can be very significant. Getting independent advice and looking for competitive rates either online or through a mortgage advisor is crucial to get the best mortgage to meet potential home owners individual needs,’ he added. Taylor Scott International
Taylor Scott International, Taylor Scott
