by Ben Chapman 20 June 2018 Independent Photograph: Getty
Prospective first-time buyers could make a saving of £2,268 per year – if they can raise a £51,000 deposit.
A study from Santander Mortgages found that prospective first-time buyers could make a saving of £2,268 per year on average if they move from renting to owning. This assumes first time buyers put up a deposit of 24% and make mortgage payments over 25 years at 2.48% interest. They pay £723 a month on mortgage payments as opposed to average rent of £912.
The potential savings are biggest in London – annual savings are £3,500 a year, although the deposit is highest, at £135,000. Reuters suggest that the average monthly rent is £289 more than comparable mortgage payments in London.
In the East of England the difference between mortgage payments and rent is only £500 a year.
Look at MortgageDrive for more information.
There are some major social changes taking place which mean that housing trends are being affected. Added to the recently precarious political situation it’s understandable that the market is having some trouble.