Mortgages cheaper than renting in east Midlands
Those looking for a home in the east Midlands may want to look at getting a mortgage over renting, as current prices for the latter mean that more money could be saved by buying.
A new report by the Nottingham Building Society has shown that average monthly rents are costing residents in the east Midlands more than typical mortgage repayments over the same period of time.Despite rent prices falling overall across the UK in the past year, the average tenant in the area will pay £633 a month to their landlord, while those with a mortgage on an £80,000 house can expect outgoings of just £508 over 30 days.
The research showed that even with the deposit and arrangement fees, choosing a mortgage over renting will save east Midlands residents over £500 a year - £13,000 over the lifetime of a 25-year deal.
Rachel Slack, spokesperson for the Nottingham, said that those currently looking for a home in the area should make sure they are choosing the best deal available to them as "every penny counts" in the current climate.
She added: "I would urge people considering renting to come into one of our branches and check out the affordable properties we have just waiting to be snapped up across Nottinghamshire, Derbyshire, Lincolnshire and South Yorkshire.
"The Nottingham's first-time buyer mortgage requires only a five per cent deposit and has been launched especially to help those people looking to take their first steps onto the property ladder."
Nationwide Building Society recently introduced a new mortgage with a market-leading loan-to-value of 125 per cent, despite the risks associated with such lending.
In March, the Financial Services Authority introduced regulations to put an end to the risky mortgage lending which resulted in the credit crunch, but Nationwide insists it is a "very prudent and cautious" broker with low arrears and repossession statistics.
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