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> In the UK the rent/mortgage price calculation is the other way round, especially in the hearts of big cities. Not only is the mortgage cheaper on a monthly ba
by tomp 11y ago
> In the UK the rent/mortgage price calculation is the other way round, especially in the hearts of big cities. Not only is the mortgage cheaper on a monthly basis, it's also not subject to arbitary increases.
What?! Maybe you're not including London, but AFAIK, mortgages to buy a flat in London are at least as expensive as rents, if not more; in addition, with interest rates being at historical lows, it's more than likely that they'll be a subject to arbitrary increases in the years to come.
- pjc50 11y agoMy experiences are from Edinburgh, Cambridge and secondhand reports of various London suburbs. Certainly I don't know very many people who regard renting as a choice which makes economic sense for them if they could buy (which they can't). London may be a bit strange due to overseas money putting up prices.
- hnal943 11y agoIf you have a fixed-rate mortgage, you will never experience an increase in your payment, so I'm not sure why you think there will be arbitrary increases. Also, while the payment will be higher on a mortgage, you also have an asset. The only part of a mortgage payment comparable to rent is the interest. Do you really mean to say that the interest on a flat is more than rent?
- tomp 11y agoUnfortunately, there are no fixed rate mortgages available in the UK. The second part I agree with, the interest is cheaper than rent, but the mortgage isn't.