Buying a home is 'only cheaper with a large deposit'

Posted: 16 Jun 2010 11:15:11 GMT

Now is a good time to buy a property, but only if a large deposit is used, according to one expert.

Stuart Inman, director at MyMortgageDirect, believes mortgages for those with a low deposit are still quite high and so could cost more than a monthly rental bill.

"It is easy to say a mortgage is cheaper than renting, but obviously with a mortgage nowadays, you've got a huge deposit which people need to find," he said.

Mr Inman was speaking in response to a report from Santander Mortgages, which suggested it is cheaper to buy rather than rent in all parts of the UK other than London.

However, he explained the factor of a deposit means that it is not as simple as comparing the two monthly rates to find out which is the cheaper option.

Figures from the Council of Mortgage Lenders showed the proportion of house purchase loans going to first-time buyers in May was at its lowest since September 2007.


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