This year the UK economy has hit some challenges; energy costs, high inflation, plus much more. With this, house prices have changed and so have mortgage payments writes Ruddington’s Benwell Daykin Estate Agents.
The latest figures from Nationwide state that house prices have fallen at their fastest rate in August since 2009. Although this sounds like doom and gloom, the average house price back then was £162,112 compared to today’s price of £286,000. This means that anyone looking to move should still turn a tidy profit.
Although this probably isn’t new news to anyone, mortgage payments have now increased in line with rising interest rates. For some families, this has seen monthly repayments triple.
So with mortgage payments rising, is it now cheaper to buy or to rent?
The answer, according to property site Zoopla, is it depends where you live!
Currently, those who live in London and the south are likely to now find it cheaper to rent a property.
The average UK rent is £1,163 per month, while average mortgage repayments are £1,285 for first-time buyers with a 15% deposit.
In Ruddington and Nottinghamshire, you are still likely to be financially better off when buying a property instead. The difference though is tiny, with just £56 between the average rental payment and the average mortgage payment.
So why is this?
Put simply, house prices have been much higher in the south for a long time. Historically low mortgage rates meant that buyers could afford larger houses and pay less. Now they’re paying more.
If you are struggling with mortgage payments, please talk to Benwell Daykin who will be able to offer free, impartial financial advice from our fully regulated advisor. We would also be happy to provide a free property valuation to see how much your property is now worth.
‘Phone 0115 990 2007, or call in at 12 High Street, Ruddington, to speak to our friendly team.
