First-time buyers in the north save over £2,000 a year over renters

First-time buyers in the north could save over £2,000 a year in comparison to renters if they can get on to the property ladder

FIRST-time buyers in the north could save over £2,000 a year in comparison to renters if they can get on to the property ladder, new research shows.

The study, from Santander Mortgages has revealed there are potential savings to be made by from owning a house.

It weighed up the potential cost of home-owners' monthly mortgage payments against what they could expect to pay out by renting.

According to the figures in the north the average monthly rent is £629, but once on the property ladder, first-time buyers could expect their monthly mortgage repayments to be £451- a 28 per cent reduction. This equates to a saving of £178 a month and £2,136 annually.

According to the figures, the average first-time buyer house in Northern Ireland will set you back £131,076, with a deposit of £30,435 required. This compares favourably with the UK average deposit of £51,000 and the staggering London deposit of almost £135,000.

Santander found the smallest difference between rent and mortgage payments is in the east of England, at £43 per month - or just over £500 a year.

The research, which used average rents from the Homelet index and Office for National Statistics (ONS) house price figures, made several assumptions about a first-time buyer's mortgage payments, including that they would have a 24 per cent deposit, a mortgage rate of 2.48 per cent and be paying off what they owe over 25 years.

Miguel Sard, managing director of mortgages at Santander UK, said: "Of course, buying a property is a major financial investment with up-front costs to consider, but long-term the financial benefits can be significant.

"With annual savings averaging well over £2,000, this can really mount up over time and, of course, once the mortgage is paid off, you have a valuable asset to show for it.

"Getting independent advice and looking for competitive rates, is crucial to get the right mortgage to meet potential home-owners individual needs."

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