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0.4 %
– fall in UK house prices in October
There ’ s a commonly held view that renting your home is “ dead money ” because you ’ re paying off someone else ’ s mortgage rather than building a nest egg for yourself . But money that puts a roof over your head is serving an important purpose , and of course not everyone has the luxury of choice . If you do have the option of whether to buy a property or rent one , which is the best path to take in the current environment of uncertainty and rapid change ? It is typically cheaper to pay a mortgage than to rent an equivalent property , but things are changing fast , says Kate Eales , head of regional residential agency at estate agent Strutt & Parker : “ I think the balance is definitely shifting because interest rates will continue to increase .” The average rate on a five-year fixed-rate mortgage across all loanto-value ratios in October 2021 was 2.6 %, according to Moneyfacts . By October this year , it reached 6.5 %. Yet Eales doesn ’ t suggest you rush to fix your mortgage if you are buying now , instead recommending you go for a variable-rate product . “ Yes , rates may go up , but you can fix your rate when they stabilise rather than fixing now , which may cost you more in the long run ,” she explains .
Lodging complaints Mortgages are fast becoming more expensive . But the problem with renting privately is that there ’ s a perfect storm swirling here too , with landlords fleeing the sector in the face of rising regulation and falling profit margins . With mortgage affordability dropping and lenders
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