is is generally cheaper to pay a mortgage than rent?

[babycrazy1706]

As in the amount your pay every month?

Just curious. Xx

 

[Mazzy17]

For me...yup! Getting the mortgage is the kick in the balls though

 

[Pearls18]

It'll depend how much of a deposit you manage to put down, the bigger the deposit the smaller the mortgage thus lower payments. Also the better a candidate you are the better the rates you will get. I personally don't think it's worth being mortgaged to your eyeballs with a minimal deposit not in this market at least, but when saved up for properly then yes absolutely. And remember even if the mortgage is more than rent that is money you potentially get back if your house doesn't go into negative equity. We rent off the MOD so a mortgage could never be cheaper, we could afford to buy a small investment flat in our home town if we truly wanted, but we're choosing to save up for a good sized deposit instead.

 

[suzib76]

generally yes but if you factor in all the costs that people who rent are not liable for plus all the fees at each end of a mortgage there is probably not much in it, so yes monthly payments are often cheaper, but overall cost not so

 

[Belle25]

Not for us. Our mortgage is a bit more per month, but its worth it to know its paying for your own home hun
xx

 

[binxyboo]

Here is an example of rent v mortgage for you.
I have a small 2 bedroom house in Hampshire.
We pay about £400 mortgage on it every month.
We charge £750 rent on it every month

The rental price was set by the estate agents - not us. We have had 2 tenants in there now. Both times it was available, it was snapped up within hours as the rent for it is just below average for the area!!

HOWEVER, despite the tenant paying bills and council tax on the house, I am totally liabl;e for any large expenses. If the boiler breaks - I pay for it.

 

[babycrazy1706]

Thanks for all replies Xx

 

[tallybee]

Yeah definitely but as has been said the other expenses even it out x

 

[topsy]

I think so we pay around £255 ish for our mortgage each month, a house 3 doors down, very similar to ours is up for rent for around £550-this is what a neighbor told us, so in our case yep xxx

 

[nugget80]

We have applied to buy our house. Mortgage will be a bit more than rent but as its council that is to be expected. Will be be cheaper than private rental... Just gotta get a mortgage now!

 

[R_x]

We are looking into buying our mortgage will be abit more but we are in a council house at the mo.
If you buy it's your kids inheritance so totally worth it in my eyes

 

[nugget80]

That's just what we've done. Works out 200 a month more to buy on a 20 year mortgage. Plan is when i go back to work we Will pay it off quicker! Council valuation seems pretty spot on for houses here and no big deposit needed as i have max discount!

 

[Mummy Bean]

yes for us and everyone we know...think coz people just cant afford to buy atm rent prices are rising stupidly (but im in london)

we pay £800 on mortgage but could rent our house out for £1100.

 

[Emma&Freya]

A mortgage will be much better for me but its getting the deposit! At the moment we can only get 55k mortgage but we are going to go back and ask again by putting my income down so hopefully it goes up

 

[R_x]

A mortgage will be much better for me but its getting the deposit! At the moment we can only get 55k mortgage but we are going to go back and ask again by putting my income down so hopefully it goes up

Have you looked at new builds? They usually have good deals

 

[LynseyPynsey]

We pay £520 a month on a 17 year mortgage on a value of £74,000 (£35,000 deposit) rent. Would be close to £1,000 as its a 3 bedroom. As everyone else said though, after council tax and other bills (I.e. insurance) it isn't much cheaper.

 

[Abz1982]

depends...

we were £300 a month in rent for a 2 bed council flat in a not nice area.
We are now £560 a month for a mortgage for a 3 bed house in a rural village with a garage that is the size of a 2 bed house..thats a 96k / 25 yr mortgage on the LIFT scheme(shared ownership) and a 6k deposit on our share

So yes and no.

 

[supertabby]

It depends, as a general rule of thumb mortgage repayments will be cheaper than private rent on the same type of property. Probably not cheaper than council rent though.

In reality you could well be opting for a different size house and area when you buy, so that will naturally make a difference.

People have made a point re as a homeowner you have the cost of repairs etc - but that's generally quite small. We have lived in our house 6 years and replaced the boiler once but not needed to do anything else. You will need buildings insurance as well as contents, but again this is a small amount. And often ground rent (ours is £7 a year which is fairly standard).

Over time if you can afford to get on the housebuying ladder, it is a much better financial choice. Imagine if a chunk of your rent each month went into a savings account that you got back when you moved out. Or if after 20-25 years paying rent you had no more rent to pay ever again but got to live there for the rest of your life - and your kids when you're gone.

 

[hapygrl78]

I wouldn't look at it from about how much difference it is between paying rent or mortgage.

But rather than when you pay rent that at the end of the year you have nothing to show for it.

at least with a mortgage you can build equity.

for example. if you rent a place for 5 years at a 1000 a month then you pay $60,000. with a mortgage you could sell the place and get your money back if not more. But with rent it's just gone. in some cases you are paying someone else mortgage.

 

[Twister]

It depends on the deposit, our friends recently bought their own home and their mortgage is slightly cheaper than our rent but they had a fairly decent deposit. I am slightly jealous, but on the bright side if there's anything wrong with our house we don't have to fork out for it (and there have been at least 5 issues with it already since we moved in in January). It also depends on if you buy a house that needs doing up or one that is in good condition anyway.

I would love to buy but only if we had a big deposit.