Mortgage costs falling for new housebuyers

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FALLING house prices and a decline in the amount needed for a deposit mean purchasing a home is cheaper than renting again for first time buyers, a Sheffield building society claims.

The Nottingham, which recently moved to a new branch at Barker’s Pool, said mortgages could work out more than £20 cheaper each month than renting.

Tricia Cater, Sheffield branch manager, said: “In many cases, buying a house can work out cheaper than renting. In the Sheffield area for example, average rents are £613 a month whereas a mortgage based on a typical first time buyer property may only cost £588.56 a month based on a five per cent deposit and repayment over 29 years.”

She added: “Rents are currently high especially in popular areas so first time buyers are pleasantly surprised at how affordable buying is compared to renting. With low house prices and competitive 95 per cent mortgage deals, now is a good time to buy if you’re looking at getting a foot on the housing ladder.”