15
Jun
Mortgages 'cheaper than renting'
First-time buyers have been encouraged to invest in properties
after research revealed that it could be more expensive to rent
property than to buy it.
According to a study by Santander, mortgage repayments for
first-time buyers are cheaper than rental prices everywhere in the
UK except London.
Director of mortgage marketing at Santander UK Phil Cliff said:
"People have been justifiably cautious in approaching the housing
market in recent months, but this research strongly supports the
idea that in the majority of cases owning can be less expensive
than renting."
Recent research by Santander revealed that people outside the
capital could save £1,040 a year by buying instead of
renting.
It also showed that the average rental price outside of London is
£420, whereas the average monthly mortgage repayment is
£334 for the value of the standard national property of
£115,657.
In an attempt to encourage first-time homebuyers, the coalition
government raised the stamp duty threshold to £250,000.
