Buying cheaper than renting in all parts of the UK

First-time buyers who manage to get onto the property ladder could save an average of more than £2,200 a year compared to renting, with buying now cheaper than renting in all areas of the UK.Monthly mortgage costs are £723 for the typical first-time buyer household, according to research by Santander Mortgages, £189 less than average monthly rental costs of £912 per household. Over a year, savings from owning a property rather than renting amount to £2,268 a year on average. Biggest savings in LondonThose buying in London make the biggest savings by buying, with typical monthly mortgage payments in the capital costing £1,280, compared to average monthly rental costs of £1,569. First-time buyers in the capital are therefore £289 a month or £3,468 better off a year by buying rather than renting. These figures are based on an average first-time buyer property in London costing £420,500 and assume the buyer has put down an average deposit of £134,660. The smallest difference between rent and mortgage payments is in the East of England, where renting costs an average of £905 a month, compared to average monthly mortgage costs of £862. The average price of a home in the East of England is £252,158, with first-time buyers putting down an average deposit of £59,553. Raising a depositThe biggest challenge most first-time buyers face is saving for a deposit. Many prospective homeowners are prepared to make big sacrifices to achieve their aim of buying, with 38% prepared to move back in with their parents to raise funds for a deposit, whilst a fifth said they would give up alcohol to save money.“Of course, buying a property is a major financial investment with upfront costs to consider, but long-term the financial benefits can be significant,” said Miguel Sard, managing director of mortgages at Santander UK. “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. Getting independent advice and looking for competitive rates is crucial to get the right mortgage to meet potential homeowners’ individual needs.”