Mortgage cheaper than rent?

I have just bought a house last year. Rent was £925 a month, mortgage is now £1850. So in my experience no it isn't cheaper. I think those with small mortgages had large deposits or bought a house many years ago.
Lots of variables though.

My mortgage is €1300. The people living next door to me rent for €3000. Identical house but mine has been renovated so would fetch even more rent.

So, again, not the norm.

What was your point again, exactly?

Just checked rental prices near me and purchase prices. Identical 3 bedroom properties on the same street. Rent £895, purchase price £140,000. Got an estimate of mortgage payments of £700-£770 for a 100% mortgage so yes its true at current prices for property near me.

True in our case even with only 5% deposit.
One factor is rent often increases by £100+ a year
In year one of owning our mortgage was about the same as our old rent
In year 5 our rent would be around £500 more whereas our mortgage will be the same as we fixed for 5 years.
Mind you when our fix is up it may go up but it may also go down.

I mean it depends on equity, size and location. Our mortgage is about half the value of our house, costs around £2,600 pcm. Renting the same house would probably cost about the same. But if we had a larger mortgage it would cost more to own it. And that’s if you’re just talking about the monthly rent/mortgage costs not including repairs, wear and tear, de/appreciation and asset pots.

😂

Our mortgage is £875 and our neighbours rent their house out for £1250 / month. Exactly the same style and size house literally 3 doors down.

I mean surely you can understand that people get fixed mortgages (and at good rates) but rent is generally increased annually in line with demand / house prices?

The mortgage on my 2 bed house is £485 a month. Most I've paid on mortgage for this house is £550. The house we rented before moving to the £550 mortgage was a smaller, older 2 bed and it was £625 at that time. That very same, as in exact house, is back up for rent just now and it the best part of £1000. Half a mile apart in a large village.

I’ve voted YABVVU as you haven’t said what your AIBU is and you are being snide and arsey with posters who disagree with you.
Whats the point of this thread??

True here. My mortgage is £350; next door rents theirs for £690.

For us, our monthly mortgage payments are cheaper than rent in the same area. We were pushed to buy our first flat when our landlord raised our rent by £200pm! £1,400 to £1,600pm for a 1 bed flat. We bought a 2 bed flat and our mortgage is £1,300pm.

However, we obviously now have to maintain the property, carry out repairs, and pay the service charge (£200pm 😭).

We are now moving to a 4 bed house in Wiltshire and our mortgage will be £1,600. Comparatively, houses in that area rent for £2,500+ for 4 bedrooms (of the same spec and location).

Its very true where I live in the south.

My original 3 bed 30s semi has now had a huge extension (double storey extension, loft conversion, large kitchen/diner etc) done by us over the years. We paid by increasing taking out another mortgage & increasing our monthly mortgage repayments. Our mortgage is £1500 pcm. Its now a 4 double bedroom home with a office.

The house we're joined to is still a standard 3 bed 30s semi with the only addition the lean too that was put up in the 80s.

A landlord bought it last year and did it up inside (new kitchen & bathroom, knocked wall down between tiny kitchen & dining room to make it bigger). Very cosmetic apart from that & they didnt even chnage the windows that had been in nearly 30 years.

It was rented last year for £1800 pcm. My mortgage is definitely cheaper & my house is significantly larger than next door.

I bought my one-bed flat last year (Zone 4 London) for £250,000. My mortgage is 800pm. The same flat would rent for about 1300pm.

...But not actually a sustainable business model, long term, without significant investment or money coming from elsewhere. And it's subject to huge risk, as the crash 2007 - 2009 made very clear.

And not the norm in the rental market, not by a long shot.

A mortgage is much cheaper. I’m looking to separate and rent. Ex DH would have £750 mortgage and my rent would be £1700/£1800.
(I’m not being entirely screwed over, there are reasons why it’s me moving out)

Very true. Our mortgage is £900 a month, rent on the same house would be £1300-1400

I think it very much depends. I live in a very cheap area but even so the price of private rentals has shot through the roof. It’s now £800 to rent an ex council house with a basic kitchen and bathroom and an identical council house next door is £380 a month. You could buy the privately owned house next door for around £125k but with a full rtb discount on the council house it would be £99k. So I’m pretty sure that the mortgage would definitely be less than £800 a month. My DH bought a council flat. Was valued at £62k and he paid £19k about 8 years ago. His council rent was £440 a month back then (nice area) and his mortgage is £260 a month fixed over 10 years but will be repaid fully in a few weeks. Now valued at £100k . So it really does depend on your circumstances/area/council tenant etc.

Thank god it wasn’t just us, fixed on a 5.85% deal for 5 years as interest rates plummeted and we didn’t have enough money to pay the redemption penalty to get out of it.

It's different on any given day. The month before the 2008 crash we took out a 5 year fixed rate mortgage at 6.99%. House value 125k with a five percent deposit. Payment was £750, rent on next door was £600.

My current house would rent for about £1200 and a 35 year mortgage at 4.9% with 10% deposit would be about £1260 a month so basically the same. But in 2022 you could get 2% mortgages and the house value was the same so it's always fluctuating.

To rent our house would be 2.5x higher than we pay on our mortgage (currently 60%of value of house, if we had a 100% mortgage, it would still be cheaper to own). Landlords factor in paying their mortgage, insurance and management costs and then making a profit - ie they are obviously charging more than they are paying on their mortgage and more than a private owner would be paying.

The reason people tend to rent isn’t because of the monthly payments, it’s because they need a minimum deposit (impossible for many to save for with high rents), a perfect credit history, and many other factors that make getting a mortgage administratively difficult. There is also, as some people mention, the additional financial burden of owning a house that is the landlord’s problem - replacing boilers, dealing with plumbing and electrical issues, roof repairs etc. whereas rent includes/protects renters from most of this.

My mortgage is way cheaper than rent but we have a lot of equity and been paying it a
long time. But I just did a rough calculation online. Buying a house like mine worth £250k with 5% deposit and 35 year mortgage would be £1147 a month. Rent on a similar house I saw online would be £1300.

As an example, a starter home near me is £300k. To buy it now, if you had a 10% deposit, the mortgage would be around £1,270 depending on the rate. To rent the same property would be £2,000 per month.

Someone I used to work with paid less per month on her mortgage than I paid rent for a room in a shared house, another colleague's rent was twice her neighbour's mortgage, (and she was told she couldn't buy a house as she wouldn't have been able to afford it!) Rent prices are utterly ridiculous, and the same for the criteria for getting a mortgage.