Derby property: Buying versus Renting, Which option is cheaper?

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A recent report from one of the leading UK Mortgage lenders shows that buying a property in Derby, Derbyshire and the UK in general could save up to £87 a month.

 

Phil Cliff, director of mortgage marketing at Santander UK said: "The savings to be made through buying, as opposed to renting, have increased dramatically in the last six months."

 

An average mortgage repayment in Derby is now less than standard rental price. People in the north-west can save an estimated £141 although in London they are still finding it cheaper to rent as an average mortgage is £359 more than the monthly rent.

 

However, one expert said, savings happens only if a large deposit is used.  Stuart Inman, director at MyMortgageDirect, believes mortgages for those with a low deposit are still quite high and so could cost more than a monthly rental bill.

It is easy to say a mortgage is cheaper than renting, but obviously with a mortgage nowadays, you've got a huge deposit which people need to find. When factoring in the issue of a deposit it is not as simple as comparing the two monthly rates to find out which is the cheaper option.