Rent 'more expensive than mortgages in East Midlands'

Date:Wednesday 15th July 2009
Author: Susanna Kavka

Consumers who rent properties in the East Midlands may be paying more each month for their homes than those with mortgages.

This is according to figures produced by The Nottingham, which said that rents in the area have bucked the national trend and have risen to an average of £633.

In contrast, monthly mortgage repayments in the region for a home worth £80,000 could be around £508.

Commenting on the figures, The Nottingham's Rachel Slack said: "It's a common belief that renting is cheaper than buying a house. But as our research demonstrates, this is not the case in the East Midlands."

The building society suggests that the average amount homeowners could save over the course of a 25-year mortgage compared with their renting counterparts is £13,000.

However, Michelle Slade, a spokesperson for Moneyfacts, recently suggested that amid predictions of future rises in the UK's base rate of interest, homeowners are becoming increasingly concerned about possible mortgage rate increases.