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Cheaper to pay and mortgage than rent

Mortgage brokers Bishops Stortford

Enable’s mortgage brokers in Bishop’s Stortford note with interest that “First-time buyers are saving more than £800 a year as the gap between buying and renting has stretched by 8 per cent during the pandemic, “according to data from Halifax.

The recent Halifax Buying vs Renting Review suggests that monthly rental costs have risen by 10 per cent to £821 in the past year, while monthly buying costs have only increased by 1 per cent to £753 during the same period. The report is based on the housing costs associated with a mortgage on a three-bed home, compared to the average monthly rent of the same property type. It has to be accepted that the amounts for a deposit have gone up with the average first-time buyer deposit amount up by £11,677 since the start of the pandemic last March to £58,986, and the average mortgage payment has increased, but low-interest rates have meant mortgage payments have risen less sharply rental payments, the study said.

 “Lockdown restrictions may have held back renters planning to buy a property during the past year with its practical challenges, and while the stamp duty holiday race has helped drive record levels of mortgage approvals, the cost of renting has crept up in the same period.” Said Halifax mortgages director Andrew Assam.

 “Raising a deposit is still the biggest challenge for those looking to get on to the property ladder. We know that first-time buyers will benefit from steps that make finding a deposit more of a reality and the new Help to Buy Mortgage Guarantee scheme could be a gamechanger for those saving hard to take the first step and often paying rent at the same time.” Says Assam.

Enable’s mortgage brokers in Bishop’s Stortford can help you look at moving from renting to buying and help you find the mortgage you need to get onto the property ladder.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage


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