Mortgage Affordability
Affordability Myth #1: “Renting is cheaper than owning”
2 minute read
Rana Miah | June 18, 2025 Share
This one comes up a lot – the idea that renting is cheaper because monthly rent payments can be lower than mortgage repayments.
Here’s the bigger picture
Yes, renting might look cheaper at first glance. But rent only covers your right to live somewhere temporarily. That money doesn’t build you anything long-term.
Owning, on the other hand, means you’re putting money into something that belongs to you – a home that could grow in value over time. Plus, many mortgages offer fixed monthly payments, giving you more predictability than rent, which can (and often does) go up.
That said, it’s important to be realistic. Owning comes with extra costs, such as buildings insurance and maintenance (especially if you’re in a leasehold property where these might be rolled into service charges). Renters don’t usually deal with those directly, though landlords do tend to factor them into rent prices.
What to think about instead
Instead of just comparing monthly payments, look at the full picture. What’s the upfront cost of each option?
- Renting might mean a deposit and the monthly rent.
- Buying means thinking about your mortgage payment, insurance, and any future maintenance.
Owning may cost more at the start, but it also builds equity – and over time, that can really add up.
Alex is renting a flat for £1,000 a month. Ben has bought a similar place, with a mortgage payment of £1,200. Five years later:
- Alex’s rent has gone up to £1,150.
- Ben’s mortgage is still £1,200 – but now he owns a part of his home and may have seen the value of the property increase.
Ready to see what you could afford?
Use our free online mortgage repayment calculator to get a rough idea of what your repayments might look like. It’s quick, easy, and can help you make a more informed decision about what’s right for you.
Buying a home is a big move, but understanding what’s possible makes it a whole lot less scary.
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