Page 28 | Mortgage cheaper than rent?

limeandwater · 2026-03-23T10:12:03+00:00

On this forum and plenty of other social media sites to be fair - there are a number of people who state that a mortgage is often cheaper than the rent. It's not true is it? In fact it is quite a long way from being true.

Randomlygeneratedname · 23/03/2026 10:25

An identical version of my house in my estate is rented around £1700 a month, my mortgage is £950 a month.

skippy67 · 23/03/2026 10:25

limeandwater · 23/03/2026 10:21

I mean that isn't a fair comparison then is it.

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You haven't given me anything to compare it to! You said you'd love to know the figures, I gave you context. All you've done is vaguely reference your "experience".

FeyreArcheron · 23/03/2026 10:25

limeandwater · 23/03/2026 10:24

It really doesn't.

This has been my business for 21 years.

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Well if you're renting out property for less than your mortgage plus tax and agents fees then you're a fool

Original poster

limeandwater · 23/03/2026 10:25

Lovelanza · 23/03/2026 10:23

My neighbour pays £1200 pcm to rent whereas I pay £331 for mortgage. Not sure why you are asking as it’s always been the case that renting is higher

What is the value of the property?

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TheSpook · 23/03/2026 10:24

I'm sure it depends on area and size of deposit.
DS has just bought in Leeds. His rent was £1350 a month. Mortgage is around £1250. Similar sized house and location.
Bought for £285k with £185k mortgage

Original poster

limeandwater · 23/03/2026 10:24

FeyreArcheron · 23/03/2026 10:24

It exactly works like that

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It really doesn't.

This has been my business for 21 years.

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Original poster

limeandwater · 23/03/2026 10:24

tealandteal · 23/03/2026 10:23

It certainly is around here, houses like my previous house (exactly the same, on the same street) are £1,100-1,300 pcm. Our mortgage was £500 pcm.

What are the average value of the properties?

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FeyreArcheron · 23/03/2026 10:24

limeandwater · 23/03/2026 10:22

Sadly it doesn't work like that.

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It exactly works like that

Lovelanza · 23/03/2026 10:23

My neighbour pays £1200 pcm to rent whereas I pay £331 for mortgage. Not sure why you are asking as it’s always been the case that renting is higher

JacquesHarlow · 23/03/2026 10:23

Whammyammy · 23/03/2026 10:19

Plus with a mortgage it will end one day, and the mortgage payments will be zero. Rent is for life.

Nah that's patently not true either @Whammyammy

My parents rented throughout their late 20s until my father retired two years ago. For flexibility but also initially because he had bad credit.

However they saved and invested using basic FTSE trackers, and over time this investment increased as his income rose.

So they bought outright in the end, in their 60s, three bedrooms in a Sunday Times "best places" area... having been told forever by people like you that "Rent is for life".

There's more to life and investments than "bricks and mortar" which seems to be the only message anyone understands on here.

🤔🙄

tealandteal · 23/03/2026 10:23

It certainly is around here, houses like my previous house (exactly the same, on the same street) are £1,100-1,300 pcm. Our mortgage was £500 pcm.

ClaredeBear · 23/03/2026 10:23

mortages have always been cheaper in these parts, though of course there are other costs associated with being a home owner. Even if it was initially more expensive, over time your earnings usually increase and mortgage payments usually make up a smaller proportion of your housing costs, whereas a landlord will always set rent at market rate.

MyBrightPeer · 23/03/2026 10:22

When I bought my first flat with my husband, our payment for housing almost halved and that was room in a flat in SE London to half a one bed flat in East London. My mortgage payment is now closer to rent but only because the rate jumped.

Original poster

limeandwater · 23/03/2026 10:22

Candlesticko · 23/03/2026 10:22

I think people forget to factor in the deposit when making this comparison. Obviously if you have a decent amount of equity then the mortgage will be cheaper. For a meaningful comparison you'd have to work out what a (theoretical) 100% mortgage would cost.

Exactly.

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Original poster

limeandwater · 23/03/2026 10:22

FeyreArcheron · 23/03/2026 10:20

well in most cases rent will be fairly significantly more than the landlords mortgage otherwise they would be making a loss in renting out the house and so wouldn't bother. The landlord has to pay tax on the rental income so generally rent will be at least the mortgage plus the tax and agents fees

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Sadly it doesn't work like that.

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Candlesticko · 23/03/2026 10:22

I think people forget to factor in the deposit when making this comparison. Obviously if you have a decent amount of equity then the mortgage will be cheaper. For a meaningful comparison you'd have to work out what a (theoretical) 100% mortgage would cost.

Original poster

limeandwater · 23/03/2026 10:21

Whammyammy · 23/03/2026 10:19

Plus with a mortgage it will end one day, and the mortgage payments will be zero. Rent is for life.

Absolutely, obviously buying is better.

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Original poster

limeandwater · 23/03/2026 10:21

skippy67 · 23/03/2026 10:19

He had a big deposit saved which obviously affected how much he needed to borrow.

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I mean that isn't a fair comparison then is it.

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FeyreArcheron · 23/03/2026 10:20

limeandwater · 23/03/2026 10:18

It isn't my experience in the slightest.

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well in most cases rent will be fairly significantly more than the landlords mortgage otherwise they would be making a loss in renting out the house and so wouldn't bother. The landlord has to pay tax on the rental income so generally rent will be at least the mortgage plus the tax and agents fees

EdieP · 23/03/2026 10:20

I think it is if you took out the mortgage a decade ago or more. New mortgages, no way.

skippy67 · 23/03/2026 10:19

limeandwater · 23/03/2026 10:17

I would love to know the figures for that.

Not because I don't believe you, it just isn't my experience.

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He had a big deposit saved which obviously affected how much he needed to borrow.

Whammyammy · 23/03/2026 10:19

Plus with a mortgage it will end one day, and the mortgage payments will be zero. Rent is for life.

TigerRag · 23/03/2026 10:18

I'm sure I overheard my parents discussing whether to buy their house some years ago and they did say that rent was (back then no idea about now) about the same price as the mortgage

FloweringShrub · 23/03/2026 10:18

Mortgage, usually yes. But people don't count the overal costs of owning property.

Original poster

limeandwater · 23/03/2026 10:18

Forty85 · 23/03/2026 10:17

Can you give a reason or expand on why you are saying it is not true?

It isn't my experience in the slightest.

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