Recent research from Lloyds has revealed that, on average, first-time buyers in the UK are paying around 17% less each month for a mortgage than renters are spending on rent… even when using a 5% deposit.
Buying vs. Renting: The Numbers
Lloyds compared rental and mortgage payments across 11 major UK cities and found that in most, owning a home works out cheaper.
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Glasgow: Average savings of more than £4,700 per year for buyers, with deposits starting from around £8,600.
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Newcastle: Buyers could save roughly £217 per month, or £2,600 a year, based on a £9,000 deposit.
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Nottingham: Savings of about £86 per month, or £1,000 annually, with a deposit of around £9,150.
What This Means for Renters
According to Lloyds’ head of mortgages, Amanda Bryden, many renters are already managing higher monthly payments than they would face with a mortgage. Low-deposit mortgage products could therefore help more people make the jump from renting to owning sooner than expected.
While buyers should still consider extra costs like legal fees and moving expenses, the long-term financial benefits of homeownership — including building equity — often outweigh these short-term expenses.
Could Now Be the Right Time for You?
If you’re currently renting, it may be worth exploring what your monthly payments could look like as a first-time buyer.
Contact us today!
City Mortgage Solutions Ltd
020 7481 3736
info@citymortgagesolutions.co.uk