The average rent paid by tenants in England and Wales reached a record monthly high of £692 in April, according to a recent survey.
Locally, some are paying much higher rents than the average.
For many clients, we often find that arranging a mortgage over a longer term either matches or lowers their monthly housing cost compared to renting.
Of course, owning your own home brings responsibilities. But being a home owner also brings security.
Many landlords and what we refer to as “accidental landlords”. Maybe they couldn’t sell their home a couple of years ago and decided to rent their property out. Many of these “accidentals” have decided to sell recently or are planning to sell.
This type of landlord should make tenants nervous. You can only stay in the property for as long as your tenancy agreement allows and once this has expired, it’s up to your landlord whether they renew the contract.
Of course, renting for some people is absolutely the right thing to do. If your life is about to change, maybe a new job or a re-location is just around the corner; buying a home probably isn’t the right thing to do.
I wonder how many people have decided to rent because they either think or have been told they can’t get a mortgage. How many of those people only went to their own bank. And how many think you need a 25% deposit to get a mortgage?
As mortgage advisors, we have seen the mortgage market evolve in 2011.
Lending criteria is still very fragmented. A “no” from one lender does not necessarily mean a “no” from another. This is where a good broker can help in matching you to the right mortgage lender.
We can also report that we have a very good selection of mortgages available with a 10% deposit and even a mortgage requiring only a 5% deposit to help make the transition from tenant to home owner more realistic.
Call us today on 0121 733 8833
Your home may be repossessed if you do not keep up repayments on your mortgage
Oak Tree Mortgages are authorised and regulated by the Financial Services Authority
