Mortgages ‘£100 a month cheaper than renting’

cardboard house with stones against the green grass

cardboard house with stones against the green grassAt a time when family finances have to be so carefully considered, it's always refreshing to hear some positive news about how far our money is actually getting us.

And for the homeowners among us out there, it seems such news has arrived, offering those who have been fortunate enough to buy some welcome peace of mind.

New figures from Halifax show that the cost of owning a home has become over £100 a month cheaper than renting, with the gap between the two also widening.

It confirmed the stats by revealing that those who have recently taken out deals on houses are paying an average price of £600 each month for a three-bedroom abode - not bad compared to the £716 average being shelled out by those who are yet to step on the the property ladder.

This average saving of 16%, or £116, could prove key to families already battling the testing modern climate, the mortgage lender suggests.

Those in London have even more reason to smile, with the typical borrower in the capital paying out £1,089 - which works out at a huge 10.2% less every month than renters.

Back in 2008, Halifax claims the cost of home ownership was hitting the £928 mark - a whopping 29% more than those renting for £721.

It believes that falling mortgage costs and house prices are behind the reduction in monthly outlay.

Its housing economist, Martin Ellis, said: "The affordability gains for buyers relative to renters in the last three years have been significant.

"The average mortgage payment has fallen dramatically over recent years as a result of falling house prices and mortgage rates. At the same time, rents have risen due to strong demand for rented accommodation."

If you're still waiting to take that all-important first step, it might first be worthwhile taking a look at the guide to finding the right mortgage deal for you.