Taking out a
mortgage on a
property is still cheaper than
renting in the long run, according to
research .
Abbey's annual Rent vs
Buy report indicates that over a 25-year period those who
find a mortgage are on average £24,372 better off than their renting counterparts.
The
study also reveals that the most expensive area to find a mortgage is
London, while the cheapest is west
Scotland .
Abbey further states that
first-time buyers planning to get a foot on the
property ladder should
save as large a
deposit as possible when trying to find a mortgage they can afford, but that many are held back by
personal loan and
credit card repayments .
Sue Hayes, director of Abbey’s
product marketing, said: "In the long-term, paying rent is simply lining landlords’ pockets and
tenants wouldn’t even have a property to show for it.
"Aspirations for
home-ownership in the
UK remain high, which is why
mortgage lenders must take a flexible view to affordability.
"First-time
buyers might find it difficult to get on the property ladder, but they are better off in the
market than out."
Recent figures from
Alliance and Leicester indicate that
first-time buyers are making a "comeback", as mortgage affordability is at its best since 2004.
