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Halifax believes first-time home buyers should be receiving a mortgage rather than rent.
The low mortgage rates are currently contributing to a market where it is considerably cheaper for first-time home buyers to buy, in comparison to renting.
On average, the monthly cost for a first-time buyer purchasing a three-bedroom house was roughly £658 at the end of 2014, mortgage lenders Halifax have disclosed.
It was compared to the average rent of £720 paid on a similar type of property.
The competition between lenders has pushed the mortgage rates to record lows in the past months.
In England’s capital, purchasing over renting saved an average of £1,338 over the course of last year, this represented an 8% saving for the buyers.
London, nationally, marked the biggest saving for first-time buyers with the smallest saving found in the East Midlands, where buying is only 1% cheaper.
Craig McKinlay, mortgage director at Halifax, said, “Average home buying costs are significantly lower than average rental costs, providing first-time buyers with a large financial saving if they can get on the housing ladder.”
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