Is it cheaper to buy or to rent?

Is it cheaper to buy or to rent?

Can’t afford to buy a house? Then it must be cheaper to rent? Not the case anymore!

The latest figures from Money Advice Service found that the average mortgage payment is less than the average rent payment.

Over the last 5 years both rent and mortgage payments have been on the increase but, rent has increased at a much higher rate! In 2015 it was 8% more expensive to rent each month than to pay a mortgage – complete change from 2009 when it was 16% cheaper to rent!

What’s caused the change?

For many it is the increase in house prices over recent years that has priced people out of the market in turn leading to an increase in demand for rental property and landlords have taken advantage of this by purchasing more buy to let properties but, will this continue as the tax on second properties has recently increased to 4%! The low interest rates from the bank of England means that mortgage repayments are low as they have stayed at 0.5% for the last 6.5 years!

Are you not sure if you are eligible for a mortgage? Well why don’t you give our dedicated Financial Services team a call today! Our experienced team work with and guide you through each step of the process! If you read some of our previous posts you’ll see that we work with lenders who will lend to people with small or no deposits along side government schemes such as Lift and Help to Buy. Want to find out more? Then give us a call today on: 01738 45 90 69.