Taking a leap into homeownership can feel like a daunting proposition for many, especially considering the deposit required, the amount of stamp duty payable and additional fees. But while renting offers greater flexibility to move around and less responsibility, becoming a homeowner could prove to make the most financial sense for many according to new statistics.

Recent research has revealed that in two-thirds of Britain’s cities, buying a property is far cheaper than renting. The comparison of renting a two bedroom property as opposed to maintaining mortgage repayments in 50 of the UK’s biggest cities has exposed some surprising results.

Glasgow has come out on top as the best city for buying, with the median monthly rent amounting to &596 compared to an average monthly mortgage repayment of &450.

Second in line, but not far behind is Birmingham with tenants forking out a median of &826 a month on rent compared to an average of &650 each month being spent on mortgage up-keep.

Lawrence Hall of Zoopla has said: ‘Once you get past the initial fees that come with a house purchase, such as a deposit and stamp duty, our figures show that it can pay to try and get on the property ladder.’ ‘Particularly if you’re in Scotland, Northern England or in the West Midlands, taking the first step onto the ladder and sacrificing the flexibility of renting can be a much cheaper alternative.’

Take a look below at the top 10 locations where buying works out cheaper than renting:

1. Glasgow
2. Birmingham
3. Bradford
4. Coventry
5. Nottingham
6. Dundee
7. Barnsley
8. Middlesborough
9. Leeds
10. Peterborough

Although this is promising news for many potential buyers looking to get their foot on the property ladder, in some cities property prices may still seem unattainable. London being one, with the median monthly rental cost coming in at 44% lower than the average mortgage repayment of &3127 per calendar month.

Top 10 locations where rental costs are lower than mortgage repayments:

1. London
2. Cambridge
3. Bournemouth
4. Aberdeen
5. Brighton
6. Reading
7. Bedford
8. Liverpool
9. Colchester
10. Southampton

Overall the South of England appears to offer much better value for renters. Although it cannot be forgotten that paying into your own mortgage over your landlords can help you to build long term financial security.

Making the decision to purchase a property should not be taken lightly and everybody’s personal circumstances and requirements differ, but in our opinion now is the perfect time to consider buying for tenants across the UK.

Although the cost of buying a home is still increasing, the amount needed to up-keep monthly mortgage repayments in many locations is far less than the cost of renting.

Could it make financial sense for you to get your foot on the property ladder?

Recently published figures indicate that stability is returning to the mortgage market despite the ambiguity that surrounded the recent Brexit vote. Some financial experts are also keen to stress that the housing market continues to fare better than many expected.

Mortgage lenders are seeing a surge in the number of mortgage applicants, reaching levels seen before the UK voted to leave the European Union. Since the Bank of England lowered the base rate to 0.25% in August there has been an increase in the number of re-applicants and new applicants, signalling a progressive rise in consumer confidence.

House purchase approvals have also increased, signalling that the 20-month slump in growth is now on the rise with nearly 63,000 approvals authorised within the period. Gross lending for the whole of 2016 is also estimated to be upwards of &245bn, which indicates a 10-12% rise when compared to 2015.

With the base rate at an all time low, experts consider that the cut should provide a boost to the finances of mortgage applicants due to the availability of cheaper and more competitive mortgage options. The news also signals a positive move for those who are concerned about the rising cost of living, with first-time buyers and movers now spending, on average, under 18% of their monthly household income on interest and capital repayments’.

Whilst the government has been keen to help first-time buyers with incentives, there has been a steady decline in the second-stepper market. Brexit, and the economic uncertainty that followed, seemed to have subdued this area of the market. However, although some experts stress that the number of people choosing to re-mortgage has remained broadly unchanged since August and has done little to encourage people to switch, the forecast, provided by the Council of Mortgage Lenders, indicates that ‘the mix of lending has moved towards re-mortgage activity’, accounting for over 40% of all lending’. They also indicate that this trend is likely to ‘continue in the future’. 

An overall increase in mortgage lending ultimately signals a return in confidence and has the potential to stimulate a number of knock-on effects. For example, a rise in consumer confidence could trigger an increase in vendors bringing properties to market, increasing availability. 

Complementing this positive news within the mortgage market, the UK Government has continued its campaign to promote incentives to prompt further beneficial activity within the housing market, offering various buying schemes, pledging investment capital, and relaxing regulations. These are all expected to help provide stability to the market in the future.

The final quarter of the year is also recognised as a good time for consumer investment as banks and mortgage providers seek to meet their lending targets. Couple this with the recent findings and it’s fair to say that now would be a good time for some people to re-evaluate their current mortgage arrangements.

The ‘fixer-upper’ is a property that has the capability to stir a myriad of mixed feelings. On the one hand, there’s the feelings of elation and self-satisfaction, knowing that all your hard work, late nights and lack of social life has all been worth it. On the flip side, there’s all the…hard work, late nights and lack of social life…

Make no mistake, taking on a ‘fixer-upper’ is a labour of love, and one where persistence is key. However, putting your own stamp on a property is great feeling, so with this in mind here’s our top 5 tips to help you get the very best from your dream ‘fixer-upper’.

Location, location, location

Understanding the area where your ‘fixer-upper’ is located is a key consideration. Areas can quickly become both desirable and undesirable depending on fluctuating property prices. Getting the right information from an established property professional, one who truly knows the market, area, local amenities, and any future developments that could impact pricing, will all help to determine if the property you’re looking at is worth the investment.

Evaluate your ROI

Once you’ve identified the right area, it’s time to find the right property. Even if you don’t intend to sell it it immediately, understanding which ‘fixer-upper’ will achieve you the greatest ROI is an important consideration. Look objectively at the area you’ve chosen and evaluate the relationship between the local amenities and the property. For example, a three-bedroom house located near a school has a much greater probability of selling than a two-bedroom house in the same vicinity due to parents with children looking to buy or rent in the area. It might sound obvious, but taking these points into consideration will always help to achieve a greater resale value.

Cost, cost and then cost again.

Getting informed estimates of all the work you’ll need to have done will pay dividends. It’s almost certain that your costs will increase from your original budget, so make sure you’re financially prepared for the work that you're about to have done. If you’re the hands-on type, you’ll save yourself precious funds. If you don’t know your flathead from your pozi, chances are it could be a costly project, so be financially prepared. Also, consider over-budgeting, that way you’ll have a reserve should anything go wrong. 

Get ready for the strain

If you are committed to putting the hours in to achieve your dream, make sure that you make time for some respite. ‘Fixer-uppers’ have the potential to take up a lot of your time and energy. They can also put undue pressure on your relationships, so be prepared to use up a great deal of your patience.

Enjoy the experience

Ultimately, the project will (conceivably) have an ending. When it does, there aren’t many more satisfying feelings than knowing you’ve achieved exactly what you set out to do. Stepping back, hands on hips, covered in paint, looking lovingly at your ‘fix(ed)-upper’ will be your reward for all your hard work. As we’ve already stated, it’s a daunting task, but one where the pros can truly outweigh the cons when done right.

With the Bank of Mum and Dad (or Bank of Granny and Grandad in some cases) becoming a frequent source of finance for many kids or grandkids looking to buy a property, more and more people are looking for ways to help support their family in looking for a home.

Back in the good old days, it’d be as simple as handing the money over to the loved one and letting them get on with. However, it’s not always financially feasible to just hand over tens of thousands of pounds to a loved one. The good news is, many lenders have recognised a lucrative niche market in your good intentions and now offer several offers that only sees you give a portion (or none, provided the loved one is trustworthy) of your money to the mortgage provider.

Guarantor mortgages

If you already have the money, and were planning on gifting it anyway, then this is the perfect offer. Your good financial standing allows you to guarantee the mortgage debt, meaning that any missed mortgage repayments on the part of the homeowner, will be picked up by yourself.

Family offset mortgages

A Family Offset Mortgage requires you to deposit the cash into a savings account, which is linked to the relative’s mortgage. Each month, both you and the relative will pay the cost of the mortgage together.

Family deposit mortgage

The Family Deposit Mortgage is a mixture of the two above mortgages. You act as a guarantor for your loved one by depositing a percentage of the mortgage into an account, where it is held as security, in case your relatives can’t afford to cover the payments. In some cases you’ll receive the money back with interest after a few years.

Flexible family mortgages

This one will depend on the trustworthiness of the family member. If you have a large amount of equity on your home, or if you own it outright, then you can now use the value of your home as a security. Another version allows you to put money in an offset account, which will lower the amount of the mortgage on which interest is charged. This one is risky and will require gathering advice from many different channels.

Joint ownership

You and the child would essentially share the ownership of the property. The size of the mortgage loan is based on both of your earnings and assets. You’ll both be obligated to repay the mortgage and if one of you fails to repay, it falls on the other to pick up the slack.

There are many methods for helping a loved one afford a property. If you need any further advice on which would suit you best, get in touch with us today.