To buy property in the UK is cheaper than to rent it

To buy property in the UK is cheaper than to rent it especially profitable to buy a property in London, where prices for rental housing is 56% higher than the national average.

Indeed, the monthly payment of the average real estate buyer obtaining a mortgage is less than rent for similar size and location property.

The analysis of mortgage Department “Santander Bank”, shows that consumers can save an average of £2,300 a year, compared to a tenant.

The average monthly rent in the UK is now £995 pounds, and the average monthly payment on a mortgage of £805 . Monthly savings of £190 pounds good flows in the amount of £2,300 a year.

The biggest savings comes from buyers in the South West of England – £192 pound per month. The buyer of real estate in London saves £179 pounds each month. However, for those who live in the East of England – the savings are quite small – only 2% in a month.

In the study of Santander Bank indicated that the average cost of buying property in the UK is £212610. This means that for a buyer who takes a loan, the cost of the original fee, which usually comprises about 21% of the purchase price, will be £44648.

Among the potential buyers of real estate in a mortgage is often argued that buying property is a big financial burden. However, in practice it turns out that the buyer saves on average about £2000 a year. Of course, the main advantage is the availability of a valuable asset owned by buyer. Thus, the main issue for a buyer, first time buying a house is the availability of the initial Deposit. Banks are recommended to contact professional consultants that will help you choose a suitable mortgage scheme. In addition, great help to property buyers in the UK, for the first time buying a house, having the government of the United Kingdom. So, the mortgage lending scheme “help to buy” allows to get additional interest-free loan from the state in the amount of from 20% to 40% with favorable terms of repayment, which is sent to the Bank as a down payment. In such circumstances, is much more profitable to buy a house than to rent it. The buyer of property in the UK will be able to get a few thousand saved cash each year.

® Alice Morgan G. 10.12.2015

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