15 Jun

Mortgages 'cheaper than renting'

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.

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