New research has revealed that average monthly mortgage repayments are less than average rental prices in every UK region.
According to Santander Mortgages, purchasing a property – if they were able – could save renters around £2,268 annually.
In the UK, the average rent paid per month stands at £912 per household, whilst the average first-time buyer household spends an average of £723 on mortgage repayments each month.
In areas such as London and the South East, renting has tended to seem like the cheaper option given the high property prices and rising deposit costs. However, the UK has experienced a drop in inflation since 2010, with mortgage rates following suit. Rents, in contrast, have grown over the same period.
Commenting on the results of the research was Miguel Sard. The Managing Director of Mortgages at Santander UK said: “Many first-time buyers understandably focus on the challenge of saving for a deposit and wonder how they will afford a property. However, it is often assumed that when you purchase a property you will be under greater financial pressure and our research shows the reverse is true.
“Of course, buying a property is a major financial investment with upfront costs to consider, but long-term the financial benefits can be significant. 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. Getting independent advice and looking for competitive rates, is crucial to get the right mortgage to meet potential homeowners individual needs.”
