Mortgage cheaper than rent?

[limeandwater]

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.

It was my experience. Granted, it'd be different if you went from renting a one bed flat to someone buying a 4 bed house, but assuming like for like, my experience was that it is cheaper to pay a mortgage.
Granted, that doesn't account for the extra costs of home ownership - the repairs, etc.

Our mortgage is £920 while renting our house is around £1300/1400. However it depends on your deposit and equity. Our mortgage could be a lot higher and maybe more than renting if we had a 5% deposit.

Of course it’s true. You’re paying someone else’s mortgage plus a profit for them supplying you with the service!!!!!

That's not how it works.

This!!! My mortgage is 900 quid a month, were I to rent the same property rent would be around £5k a month…..mortgage pretty low now as only a few years left to go…..

Its the downpayment that makes the massive difference.

Very common for mortgages to be cheaper than rent. It would certainly cost me a lot more to rent my house than the monthly mortgage cost.

Also let’s assume you’ll need a house for 50 years. You’d pay a mortgage for 25 years and then have 25 years living mortgage free. You’d have to keep paying rent for 50 years. So in total a mortgage would be hundreds of thousands of pounds cheaper than renting.

So the landlords I know have sold last year. My colleague at work has just sold her flat. The last tenant didnt leave it in a good state. He then moved abroad so there was no real chance she could pursue him through the courts for the damage he had caused.

I have heard a few ex landlords doing things under the counter and making the rent cheaper. Taking cash etc. Not great especially for the tenants but I guess there will always be a black market.

I think you're on a windup. Why can't you actually clarify why you are asking and reply with more than one short sentence to every post?

My daughter was paying 750 a month rent for a one bedroom flat in Leeds. Has now purchased it and mortgage is about half that!

My mortgage is £1700 pcm, ndn has just gone on for rental at £2200. Identical houses. I don’t think you understand the business you have been in for however long op.

Because I have said the same thing multiple times.

What dictates rent is the market. You can't just choose to pass costs on to the tenant.

Around £300,000. These are 5 bed townhouses so there is a bit of a range depending on upkeep, size of garden etc but that’s pretty average.

And how much of your house do you own as a percentage?

My thoughts exactly.🍿

Where I lived with my ex..his mortgage fixed at £400 a month
Average rent where we lived, around 2k a month but one neighbour was paying 5.5 K !!! (Buckinghamshire) . This was two years ago

I've just bought. I was renting for the last six years. My mortgage is marginally lower than my rent was, but my rent had not increased over that time, and I am paying over less than the usual 25 years.

The rent now, as they increased it when I left, is more than £270 more than my mortgage.

I'm in a bigger property with the same number of bedrooms very close to where I used to live.

You might lose money if you bought a house to let based on today's prices vs what you can charge in rent but in 10 years time when your monthly mortgage remains at a similar monthly payment, maybe a little higher or lower depending on rates, the rental payments will have gone up in that time and you'll generally be making a profit.
What are you actually trying to ask here. Yes if you bought a house 100% mortgage today and rented it out today, then the mortgage would probably be higher than rent, but surely it's the long game not a quick instant profit

But surely you can see if the rent he paid for all those years went towards a mortgage not only would he have his investments he would also have a house (part or fully paid) and not need to buy one! Assuming he wasn't getting reduced rent for some reason.

i pay £960 mortgage a month for a 4 bed detached and friend pays £1400 for 3 bed maisonette … same area. My mortgage will be finished in 10 years, she’ll pay that for a lifetime … the difference is having the deposit to getting on the ladder.

The answer to this is going to vary wildly depending on the amount of equity you put down when buying, how much you borrow.. loan to value and your mortgage offer/rate. Our mortgage is about a quarter of what our house would be to rent but that’s because we’ve paid a load off and have very low rate still.

It tends to be true over time, even if a mortgage may be be more to begin with. Rents go up over time, while a house purchase stays at the amount you originally bought it for even though the value increases. Sure, mortgages can go up too, but nothing like rents do.

We bought our house over 30 years ago when mortgages were cripplingly high (>12%). It was still less than a rental would be in the same area (we couldn't have afforded it tbh). The value is now 4 times what we paid for it. AND we are now mortgage free. No brainer.

Of course it's cheaper to rent. The mortgage on my five bed is £667, rising to £860 when our fix ends. For the same size house in the same town, the cheapest I can find is £1500.

Ex was renting (2020) for £595 a month. After 18 months (2022) he bought the next door but one house for £570 mortgage. Rent of his old house went up to £650, then £750 and some neighbours are now paying £900 for same style house. Definitely cheaper than mortgage!

well not in the early days always - ours jumped from renting 1300£ to 1800£ mortgage then it jumped up to 2k when interest rates went up

But recently its gone back down to 1300 so it does get cheaper everntually - and rent likely would have kept going up !

Certainly true round here. You can buy a three bed terraced house for £180k, so £800 a month mortgage. Equivelent house for rent £1000 a month.