Santander says Mortgage may be cheaper than renting

Date:Tuesday 15th June 2010
Author: Max Freedman

A spokesperson for Santander has suggested that renting could be more expensive than buying a home in some cases.

Phil Cliff, director of mortgage marketing at the firm, explained that people have been fairly cautious over the past few months with regards to mortgage applications.

But he suggested the current market conditions could favour first-time buyers, since research by Santander indicates the average prospective homeowner outside of London could save £87 by getting on the property ladder.

The study claimed that buying is cheaper than renting in all areas of the UK except for the capital.

Mr Cliff added: "The now 'average' LTV of 75 per cent for first-time-buyers has provided an obstacle in some cases, but saving for a deposit is clearly a wise move."

Last week, Santander chief economist Barry Naisbitt suggested it has not come as a surprise to see the base rate held at 0.5 per cent for another month.