Renting cheaper than mortgage?

cheesylou

This is probably a silly question just to ask like this, but does paying off a mortgage tend to be more expensive per month than renting the same property? I am considering getting a 100% graduate mortgage, but the £500 a month i pay for my studio flat at the moment is quite a lot and I'm wondering if I get a mortgage, is it going to cost so much more a month than what I already pay? I know it's difficult to be specific, but I assume it will generally cost more.

The reason I ask is someone with a mortgage living in almost the same road as me with a studio flat is paying half what I'm paying. While her circumstances are obviously not the same, it seems quite cheap!

Thanks

zeddy_2

http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

Hi

This site has a calculator that you could work out your monthly repayments on. I expect if you get a 100% mortgage that it might be more than £500 pm, but it depends upon how much you're borrowing and over how long a period.

Hope this helps.

airforce_beret

There is always the option to take it over 30 years instead of 25 to reduce the monthly cost. obviously takes a little longer but may help you get on the property ladder. I'm paying just under 500 on my mortgage which was about 95k. Renting tends to seem cheaper but.....your paying someone elses mortgage when you could be paying towards your own. obviously everyone's circumstances are different and affect your mortgage application