Expert questions Santander mortgages research

Date:Wednesday 16th June 2010
Author: Susanna Kavka

A home finance expert has questioned a claim made recently by Santander mortgages, which suggested to consumers that it is currently cheaper to buy a house than to rent.

Stuart Inman, director at MyMortgageDirect, made his remarks regarding a press release published by the financial services provider, which said that first-time buyers could make an average saving of £86 per month by purchasing their home.

The only exception was London, where it is still cheaper to rent.

Mr Inman noted that it is not straightforward to compare renting and buying, since you have to take into account the costs involved in saving up for a deposit.

"It is easy to say a mortgage is cheaper than renting but obviously with a mortgage nowadays, you've got a huge deposit which people need to find," he explained.

However, in his opinion it is still "probably" a good time for first-time buyers to get on to the property ladder, but only if they can afford to pay 15 per cent up front.