Buying A Property Can Lead To Big Savings
Buying a home is something that feels out of reach for many young people in the UK, with wages stagnating and property prices continuing to rise.
However, new research from Santander suggests that it’s worth taking the time and effort to save up for a deposit and get on the property ladder, because of the savings you could make by paying a mortgage rather than rent.
According to the financial institution, people could save an average of £2,268 a year by buying a home rather than renting.
Not surprisingly, the biggest difference between rent and mortgage payments was recorded in London, where rent comes in £289 a month more expensive than the average mortgage for a first-time buyer.
Elsewhere the gap was smaller. In the north west, for instance, you can save £152 a month by buying a property rather than renting. But in the east of England the gap between the two falls to just £43 a month.
Miguel Sard, managing director of mortgages at Santander UK, commented: “With annual savings averaging well over £2,000, this can really mount up over time and of course once the mortgage is paid off you have a valuable asset to show for it.”
However, this research comes after a survey by Direct Line for Business found that more than two-thirds of renters in the UK have no plans to buy their own property. What’s more, one-fifth of those questioned said that they don’t ever want the financial responsibility of owning a home.
If you do decide to buy a home though, make sure you find reliable solicitors in Amersham to help you navigate the conveyancing process.Tags: solicitors Amersham