Cheap mortgage deals, are you frozen out?

A growing number of people who cannot get cheap mortgage deals (like those on offer here at Deal Direct) find themselves frozen out of the best mortgage deals on offer for decades.  Many are finding themselves stuck in rental accommodation with increasingly high rents to pay.  Talk to Deal Direct as we may well have the solution.

For much of the last decade, higher house prices, higher mortgage rates and the ease of getting a mortgage with a small deposit, made it often cheaper to rent than buy. Since 2008 when the banking crisis began, the growing number of young workers unable to secure cheap mortgage deals has pushed up rents by about ten per cent.

According to recent research by the property data firm zoopla.co.uk, it is now becoming more expensive to rent than pay a mortgage. In 47 of the 50 biggest towns and cities in Britain, renting has become a more expensive option than paying a mortgage on the same property. This trend is growing due to soaring rents and persistently low mortgage rates. Zoopla research shows that a year ago it was cheaper to have a mortgage than to rent in 40 of the biggest locations. The cost difference between paying a mortgage and paying the rent has grown by 50 per cent in the period.

For first-time buyers the challenge is saving a sufficiently large deposit to secure a competitively priced mortgage. Calculations reveal that with a 15 per cent deposit, those who can get cheap mortgage deals, will be about ten per cent a month better off than their renting counterparts. This difference is far greater if a borrower has a 40 per cent deposit because they would be able to find the cheapest mortgage deal available.