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Typically are mortgage payments a lot higher than rent? Watch

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    Just want to ask those who are familiar with properties/ real estate

    Is the monthly payment for mortgage a lot higher than renting the exact same house or slightly higher?
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    (Original post by HucktheForde)
    Just want to ask those who are familiar with properties/ real estate

    Is the monthly payment for mortgage a lot higher than renting the exact same house or slightly higher?
    With interests rates so low they are usually similar, at the moment but they key factor is the interest rate.
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    (Original post by paul514)
    With interests rates so low they are usually similar, at the moment but they key factor is the interest rate.
    so basically if i rent and i buy i pretty much pay the similar monthly rate..
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    (Original post by HucktheForde)
    so basically if i rent and i buy i pretty much pay the similar monthly rate..
    At the moment it should be similar but these are the lowest rates ever. Just because they have gone on for a decade now doesn’t mean they will continue indefinitely even though I don’t think they will rise significantly for a long time to come
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    Remember that the longer you pay the lower the monthly rate is...so after some years you could be paying 500 a month for a property that would be worth 800
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    (Original post by paul514)
    At the moment it should be similar but these are the lowest rates ever. Just because they have gone on for a decade now doesn’t mean they will continue indefinitely even though I don’t think they will rise significantly for a long time to come
    so if thats the case renting is pretty unattractive, since after renting for 30 years i get nothing and if i buy after 30 years of similar payment to rent i get the home, am i right saying this?
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    (Original post by paul514)
    At the moment it should be similar but these are the lowest rates ever. Just because they have gone on for a decade now doesn’t mean they will continue indefinitely even though I don’t think they will rise significantly for a long time to come
    if i seal the deal now arent the interest rates fixed till the end of the mortgage? you seem to be saying that the interest rate can be adjusted year to year?

    wouldnt the rent increase too if the mortgage payment increases?

    also is it possible to get a zero downpayment mortgage if i have good credit rating?
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    Usually, monthly mortgage payments will be less than rent, because the landlord is going to have to charge enough monthly rent to cover his monthly mortgage payments on that property, plus profits to make it worth his while.
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    There's a lot of variables involved, ie the term of your mortgage and such.

    Your rent will be a fixed amount as written within your rent contract.

    You can fix a mortgage for up to 10 years meaning that you know what you'll be paying for a fixed amount of time.
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    (Original post by HucktheForde)
    if i seal the deal now arent the interest rates fixed till the end of the mortgage? you seem to be saying that the interest rate can be adjusted year to year?

    wouldnt the rent increase too if the mortgage payment increases?

    also is it possible to get a zero downpayment mortgage if i have good credit rating?
    No you have a 30 year mortgage for example but there are many different options of mortgage like fixed and tracker for example.

    A tracker mortgage will go up and down as interest rates go up and down at the Bank of England whereas a fixed mortgage fixes the interest rate for a period of time for example 3 years then you rearrange another mortgage
    Rent generally goes up as house prices go up and not you can’t get a mortgage with no deposit.

    Generally you need 10% some do 5% but if you want the best mortgage rates you need 20% at least
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