Only homeowners in the North East are better off than renters – by £45 per month. Average monthly mortgage payments in Scotland also remain cheaper than rental costs.
Moneyfacts data shows that the average two-year fixed rate has increased by 96 basis points since the beginning of March, from 4.83% to 5.79%. However, mortgage lenders have moved to lower rates over the past week.
The regions with the biggest monthly gap between rent and mortgage payments, where mortgage payments are more expensive, are the South West at £299, the East of England at £304, London at £362 and the South East at £363.
Meanwhile, a survey carried out by Mortgage Advice Bureau (MAB) found that 47% of renters say they would buy immediately if mortgage payments matched their current rent.
Colleen Babcock, Rightmove’s property expert, said: “Mortgage payments have risen quite sharply in a short space of time for new buyers. It will be interesting to see whether more would be buyers turn to renting temporarily while rates remain high, particularly when monthly costs can exceed average rents and the timing of rate cuts is still unclear.”
Aldermore Insights with Jon Cooper: Edition 9 – Why lending strategy is becoming more central in buy to let
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