Renting now cheaper than first-time mortgages, says Zoopla

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Renting now cheaper than first-time mortgages, says Zoopla
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It is less expensive to rent than buy for the first time since 2010, but there are wide regional variations.

The rise in mortgage rates means it is now cheaper to rent a home than to buy one for the first time since 2010, according to Zoopla.

Zoopla based its calculation on the average value of a UK home of £263,000 where a first-time buyer had put down a 15% deposit of £39,500. It then calculated what the average monthly mortgage payment is compared to the average rental cost. Mortgage rates have risen as the Bank of England has lifted benchmark interest rates to tackle high inflation, which measures the rate at which prices rise.- the highest for 15 years.

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