This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-28897774
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Buying is £1,300 a year cheaper than renting - for now | Buying is £1,300 a year cheaper than renting - for now |
| (about 5 hours later) | |
| First-time buyers now save £1,300 a year by taking out a mortgage rather than renting, according to Britain's largest lender, the Halifax. | |
| Based on a three-bedroom house, the average first-time buyer pays £677 a month. | Based on a three-bedroom house, the average first-time buyer pays £677 a month. |
| The average rent paid on the same-sized property is £787, giving owners a monthly saving of £110. | The average rent paid on the same-sized property is £787, giving owners a monthly saving of £110. |
| But mortgages rates would not have to rise by very much for the reverse to be true. | But mortgages rates would not have to rise by very much for the reverse to be true. |
| The Bank of England base rate has been at a record low of 0.5% for more than five years, and that has contributed to cheap borrowing costs. | The Bank of England base rate has been at a record low of 0.5% for more than five years, and that has contributed to cheap borrowing costs. |
| As a result, the average mortgage rate is low by historical standards, at 3.06%. | As a result, the average mortgage rate is low by historical standards, at 3.06%. |
| Once interest rates have risen to 1.5%, renting begins to be cheaper than buying, says the Halifax. | Once interest rates have risen to 1.5%, renting begins to be cheaper than buying, says the Halifax. |
| Should base rate rise to 2.5% - which many people expect over the next few years - the average first-time buyer's mortgage would cost £897 a month, £110 more than if they were renting, said the Halifax. | Should base rate rise to 2.5% - which many people expect over the next few years - the average first-time buyer's mortgage would cost £897 a month, £110 more than if they were renting, said the Halifax. |
| However landlords faced by higher mortgage costs would be likely to increase rents. | However landlords faced by higher mortgage costs would be likely to increase rents. |
| Financial markets expect the first rate rise to happen at the end of 2014 or the beginning of 2015, although the Bank has suggested the first rise will be small. | Financial markets expect the first rate rise to happen at the end of 2014 or the beginning of 2015, although the Bank has suggested the first rise will be small. |