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Buying better than renting in some areas but not all

September 5, 2008 by admin  
Filed under News, News-Mortgages

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Over recent months first time buyers have experienced huge difficulties when it comes to getting a mortgage to purchase a property, with the global credit crunch resulting in far tighter credit conditions, and with lenders demanding higher deposits and increasing the interest rates on mortgage loans. With house prices falling, and expected to fall further, those that now commit to purchasing a home could end up facing negative equity in addition to the other problems.

However, some industry officials have stated that despite these issues some people could actually be better off taking the plunge and purchasing a property rather than renting. Many first time buyers have been frightened away from the prospect of purchasing because of issues that they are facing. In some parts of the UK first time buyers could enjoys savings thousands of pounds over the years compared to those that rent a home.

However, officials have pointed out that this is not the case in all areas, and there are parts of the UK where homeowners could actually be worse off than those that are renting a property. One official said that the good thing about renting was that the consumer did not have to worry about issues such as negative equity, repossession, repairs to the property, remortgaging, increasing interest rates, and other related issues.

Many consumers, however, may not be in a position to purchase at present due to the high cost of borrowing, lack of availability in the mortgage sector, and the difficulties in raising the level of deposit that lenders are now looking for.

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2 Responses to “Buying better than renting in some areas but not all”

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  1. Supermarket giants try to entice customers back says:
    September 5, 2008 at 5:22 pm

    [...] Buying better than renting in some areas but not all [...]

  2. Savings accounts suffering due to high inflation says:
    September 8, 2008 at 4:19 pm

    [...] Buying better than renting in some areas but not all [...]



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