Cost of Rents: Homeowners: Could you afford to rent your house if it wasn't yours?

Out,_Vile_Jelly

I would need at least £50k deposit and to borrow approx 6 times my salary to buy the flat I currently rent. So whether the mortgage repayments are less than the rent is rather irrelevant.

chucky

Procrastinator333 wrote: »

I stated when prices are stagnant, so there is no hpi. Ltv is then very important.

even in a stagnant market, it's more likely to favour more buyers than renters if and when you have made the most of 'lower' rates you lower that LTV even more. not if you've taken out an expensive mortgage.

with rent you pay a fixed amount every year that usually goes up with inflation, with your fixed mortgage costs you can have from 2-10 years of fixed payments that you can over pay reducing your monthly costs. you can't do this with renting.

lilac_lady

One factor in rents being so high is that some people have their rent paid by the State. A single person buying a house would need a large income to service the mortgage and wouldn't be granted a rent payment for anything bigger than a hen house.

I'd be able to rent my house but wouldn't be able to heat it!

Gorgeous_George

The key is that rents are linked to inflation. Mortgages are frozen at the time that they are taken - but can rise or fall depending on mortgage rates.

GG