There are plenty of advantages of getting a mortgage over renting. Being able to keep a pet. Having the freedom to paint your bedroom a lurid shade of purple without asking the landlord. Never having to deal with letting agents and their ‘funky’ branded Minis ever again. Of course, you may well curse the day you even considered buying a home tearing your hair out next time your boiler goes on the blink or you have to address the situation of damp in your lounge, but it really is worth it. No, really.
Need more evidence? Well, look no further than a new study from Barclays, which has suggested that those who own their own home could save as much as £194,000 over the course of 50 years over those who just rent a property.
It found that the total cost of mortgage repayments, upkeep and other assorted costs to do with owning your home tot up to about £429,000 over a lifetime of home ownership. It reckoned that renting a property of the same period would cost about £623,000.
"The cost of stepping on or moving up the housing ladder can be a big barrier for many,” said Andy Gray, head of mortgages at Barclays. “But the long term benefits hugely exceed the initial expense. Not only will you save money by becoming an owner occupier, but you will also own a substantial asset once your mortgage is paid off, providing financial security for your old age.”
Of course, there’s a massive deal of regional fluctuation on this £200,000 figure. Buying a typical home in London would save the buyer £340,000 over fifty years, whereas homeowners in the south west of England would be in line to save a relatively paltry £34,000, thanks to the unusually cheap rents. Meanwhile, the north west of England has the second lowest house prices in the country but rather high rents. Therefore, the advantage of owning over renting there is the second highest in the country at £300,000.