The places where it’s cheaper to pay a mortgage than rent
While average rents increased to £885 and average mortgage payments rose to £998 in the three months to September, in two thirds of UK council districts, it is actually cheaper to pay a monthly mortgage than monthly rent, according to figures from Experian.
Of course for many aspiring homeowners struggling to save a deposit, purchasing a property is still a distant dream.
But despite this caveat, Experian said Scotland is the best place to save money on a monthly basis by buying a property. The cost of paying a mortgage in cities such as Glasgow and surrounding areas is much lower than the average cost of renting.
Glaswegians can save more than a quarter (28%) by getting on the property ladder, with Dunbartonshire, North Ayrshire and North Lanarkshire also in the top 10 nationwide for mortgage savings.
In England, Mancunians could save the most money moving from renting to homeownership, with average monthly mortgage payments 20% lower than renting, saving £156 a month.
At the other end of the scale, Kensington and Chelsea is 144% more expensive to rent than to pay a mortgage on a property.
Jonathan Westley of Experian, said: “It’s no secret that UK property prices are at record levels, with the average cost of a house reaching six times average earnings. So it will be welcome news to many that they could potentially save cash by buying their first house. With rents continuing to rise, property values staying steady and interest rates staying at historic lows, many may find it easier to meet mortgage payments than to pay their rent – potentially saving more than a hundred pounds a month.”
Considering making the move from renting to homeownership?
If you’re a first-time buyer looking to take out a mortgage, here are Experian’s six top tips before taking the plunge: