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Buying A Home Now £120 Cheaper P\m Than Renting


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HOLA441

What proportion of mortgagees are on SVRs?

According to the FSA's latest Statistics On Mortgage Lending (Dec '12) fixed rate loans accounted for 56% of new lending in the three months to the end of last year. Some 39% of mortgagors (4.4 million) are on the lender's SVR.

At the total book level, however, variable rate loans now account for 73% of residential mortgages outstanding, up from 71% a year ago and a low of 52% in 2007.

This illustrates the trend very well:

fsamortgagedata.jpg

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HOLA442

According to the FSA's latest Statistics On Mortgage Lending (Dec '12) fixed rate loans accounted for 56% of new lending in the three months to the end of last year. Some 39% of mortgagors (4.4 million) are on the lender's SVR.

At the total book level, however, variable rate loans now account for 73% of residential mortgages outstanding, up from 71% a year ago and a low of 52% in 2007.

This illustrates the trend very well:

fsamortgagedata.jpg

blimey...if interest rates went up...banks would make a fortune.....

Edited by TheCountOfNowhere
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HOLA445

I'd say a cheap property in a cheap area would be - well - cheaper to buy than rent with say a 40% deposit on a low rate at the moment.

eg 80k house - 32k put down, 48k mortgage £120 per month interest on the 48k at 3%, £60 approx per month risk free lost interest from the 32k deposit. £20 or so per month building insurance, about £200 per month, + a few other bits to pay for, + maintenance etc, so cheaper in the long run to buy

the other end, a nice sought after house in a sought after area might only cost double the rent of the above, but could cost many times the price of the above to buy, so cheaper to rent

regarding my last sentence above, this place below would be the ideal rental compared to buying...

http://www.telegraph.co.uk/property/rentingproperty/9873175/Britains-15-quirkiest-buy-to-let-properties.html?frame=2482362#?frame=2484329

edited to say the 13th property I meant really, £650pcm or £400k to buy and thatched, definite rental winner. although the first place as well would be cheaper to rent than buy, probably most of them really.

Edited by motch
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HOLA446

Posted 17 February 2013 - 04:11 PM

motch, on 17 February 2013 - 03:42 PM, said:

I'd say a cheap property in a cheap area would be - well - cheaper to buy than rent with say a 40% deposit on a low rate at the moment.

eg 80k house - 32k put down, 48k mortgage £120 per month interest on the 48k at 3%, £60 approx per month risk free lost interest from the 32k deposit. £20 or so per month building insurance, about £200 per month, + a few other bits to pay for, + maintenance etc, so cheaper in the long run to buy

the other end, a nice sought after house in a sought after area might only cost double the rent of the above, but could cost many times the price of the above to buy, so cheaper to rent

Mmm. Assuming interest rates will stay the same throughout the term of the mortgage and perhaps no mishaps such as losing a job or unexpected catastrophe.

Yeah the catastrophe could change it big time. With the cheap place I was sort of thinking a savvy HPC would have a bit stashed away, could get a good 5 year fixed at under 3.0% now, and buy on say a 10 year mortgage, with the means to pay some or all off if rates skyrocketed after the 5 years.

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