Paying mortgage is cheaper than renting

Paul Farrow wrote in The Daily Telegraph on 14th December 2011:

Mortgage repayments are cheaper than rental bills but many first-time borrowers can’t get a mortgage.

Renting a home is cheaper than buying in just three of Britain’s 50 biggest towns and cities, a study from found.

Swansea, Plymouth and Bournemouth are the only three locations in the survey where renting works out cheaper than buying a property.

In London, renting is 31pc more expensive than the cost of ownership, leaving renters paying £6,888 annually on average compared with owners.

Rents have soared due to high demand in the sector, as would-be buyers needing large deposits or finding the terms of some deals too restrictive have struggled to get on the property ladder.

It means that struggling would-be home owners are paying the price in more ways than one in not being able to get a mortgage.

To read the full article click here:  Daily Telegraph website.