Renting and mortgage

[ANUSHIKA]

I am currently renting a 2 bedroomed flat for 265.00 a month.A lot of people have told me they found getting a mortgage is a lot cheaper and you are investing your money . has anyone else found that a mortgage is cheaper nowadays?

[Lennon]

Hmm, difficult one this as there's so many different situations. For example, where you live is a big factor due to price. Also, would you be planning to get a mortgage with somebody (partner/friend), and your financial situation. If you're not on mega bucks or don't have a rich relative and were getting a mortgage in London on your own, then I'd say renting would definately be better. But then again, you're paying �265 a month to line someone else's pocket - as my Dad would say, its 'dead money'. Like you say, a mortgage is so much better as you;re investing into it (provinding you don't get negative equity which is always a risk you have to take) but it s only better if it suits your current situation. I'm sorry if I've been too personal here, and the fact that I'm warbling on, but its a hard question to answer. I'll shut up now. :)

[ANUSHIKA]

No thanks for responding i actually live in the midlands in staffordshire so round here i think a mortgage would be cheaper :)

[woodpam]

A mortgage can be cheaper, but sometimes renting is the price of freedom. Suppose you changed your job or for some other reason needed to move house. You might find that your house took a while to sell but you still had to pay the mortgage which could be quite a struggle if you needed to rent or buy elsewhere. To someone who lives in the south of England your rent sounds like a real bargain, so maybe the time to think about buying will be when you are positive you will be in the same place for a few years.

[rinkytink]

1) Go to http://www.upmystreet.com and put in the post code or area that you would like to buy in. You should be able to find the average price for various properties in that area.
2) Go to the web sites of some big building society's and use a mortgage calculator to find out what you could borrow and at what rates.

There are so many different types of mortgage around these days that it would be impossible to say if you would pay less, without going into the specifics of the type of mortgage that you want.
BTW - you are very lucky paying 265 a month for a two bedroom flat. That would get you about nine days in my flat !!