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Better to buy?

The choice between buying a property and renting one is the biggest financial decisions that many of us adults will have to make at some point, But the costs of buying are more complicated and we can do some homework and check if buying is the best decision.

To help you answer this question, the advance mortgage calculator on this page takes the most important costs associated with buying a house and compares it to rent a similar apartment using exact same monthly payment and tells your potential net worth when you sell the property.

Years123456789101112131415161718192021222324252627282930Net Worth£-50,000£0£50,000£100,000£150,000£200,000£250,000£300,000£350,000123456789101112131415161718192021222324252627282930MortgageRenting

Summary

If you bought a property for £350,000, paying a monthly mortgage of £1,480 and sell the property after 10 years, you will be worse off by £-13,047 compared to renting a similar property.

It will be better to sell the house after the 13th year of ownership based on the values you have set below. You can change those values below using the sliders to accurately reflect your situation.

Hide break down
MortgageRent
Initial Cost£47,500.00£2,960.69
Monthly Cost£1,480.35£1,480.35
Cash at 10th year£57,467.64£70,514.37
Living DetailsHow Long do you plan to stay at this house, This is very important because it will greatly affect how better off when you decide to trade the house for a new one or move on.
Duration of stay 10 yearsHow long do you plan to stay in the house?
5 Years11 Years18 Years24 Years30 Years
10 Years
Mortgage DetailsFor a better calculation, adjust the values as accurate as possible.
Home Value at £350kWhats is the current advertised price of this house?
£125k£344k£563k£781k£1m
£350k
Mortgage Term of 30 yearsHow long is the mortgage for?
10 years15 years20 years25 years30 years
30 years
Interest Rate APR at 3.87%What is the interest rate (APR%) quoted by the lender for the loan? You should strive to get a low as possible rate
2%4%6%8%10%
3.87%
Deposit of £35kHow much is your deposit towards the house?
3%17%32%46%60%
10%
ExpensesOwning a house comes with expenses, these expenses are factored into the overall cost during the duration of your stay at your house.
Selling Agent Fees at 2%After living in the house for 10 years, when selling the house, agents will charge a percentage of the new home value
1%3%6%8%10%
2%
Stamp Duty at £11kWhen you buy a house in the UK, you will have to pay a stamp duty tax which is a percentage of the property value
0%4%8%11%15%
3.2%
Mortgage Arragement Fees £1kSometimes you will have to pay a mortgage fee to the broker
£0£3k£5k£8k£10k
£1.3k
Home Maintenance at 1%How much as a percentage of your home do you think you will need for maintenance, this value is adjusted yearly with an increase of 2% for inflation
1%3%6%8%10%
1%
Future AssumptionsHere you can make some simple future assumptions about property price growth, investments, rental growth e.t.c.
Property Growth at 2.4%Property prices tend to rise in the UK, what is your anticipated rate?
1%3%6%8%10%
2.4%
Rent Deposit at 2 x £1kIf you will be renting a similar house, what is the security deposit?
x1x3x6x8x10
x2
Rental Growth at 2%How much do you anticipate your rent will rise every year for a similar year?
1%3%6%8%10%
2%
Investment Return at 5.8%If you decided to invest or save your deposit money, what is you anticipated return on investment/savings
1%26%51%75%100%
5.8%