Rent or not to Rent

ian1246

Have you considered what the early repayment charge, conveyancing & estate agent costs are on just selling the house and then sticking the equity into a bunch of saving accounts / ISA's?

Have you worked out how much of your current mortgage pays for interest? (Amount outstanding * interest rate = yearly interest / 12 = monthly interest - deduct this amount from your monthly mortgage and thats how much your growing your equity by each month).

I say this since I'd be tempted to work out which is quicker - equity gain per month (plus the average monthly house value increase over your period of ownership) vs. Interest earnt from the house-sale equity (in savings / ISA's) PLUS whatever your monthly mortgage was - since if you dont have a mortgage or rent, you could keep saving whatever your monthly mortgage was and adding it into savings!

End result? You could end up with a very significant sum of money in savings which when you eventually leave the rental could allow you to outright buy a house or get an upgraded house with a mortgage.

Compounding is the 9th wonder of the world.