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Renting/buying Interest Rate

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Just wondering what you guys figure is an appropriate interest rate when weighing up the benefits of buying to renting. For example, I'm looking at a property that is currently for sale at £480k (but let's be real, even in this inflated market its not worth £400k). It's on for rent at £1430/month. Now even if I was to buy this place at £400k, on the basis of a 5% mortgage rate I'd be looking at interest of £1667/month? Is my rate too high? Do people just go on discounted deals and spin again once the discount period is over, if so what is the rate I should be using. Of course I'm exlcuding all the other costs associated with purchasing, but I'm aware of this added burden, just keen to work it out based on what the mortgage payment would be. If that's the case at what price would this property need to sell at to make it cheaper to buy than rent?

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At the moment you should be able to get 4.65% for 5 years locked

Which would imply a buying price of £369,000 (to be cheaper than the price to currently rent it) compared to the currently advertised £480,000 to buy....Uhmm that's a tricky decision :)

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