Should You Rent or Buy a Property in Hull?

Mortgage Advice in Hull for Home Buyers and Renters

Why should I buy a property? 

A sudden market boom or drastic plummet is an event that we never truly will happen because of the ever-changing nature of the market. For those buying a property and it quickly does down in value, your disappointment will be understandable. Throughout the years we have experienced this often, history does evidence that this happens. As done before, the value may eventually start to rise again. This all comes down to the assumption that you’re still financially able to keep the property.

Rewinding back to sold values during the Credit Crunch, known as one of the worst economic era’s in our lifetime. Less than 10 years later, the property market took a surprising turn the property market was booming and property values were improving. In the case where you have to, unfortunately, have to sell your home at the wrong time, you may be in a situation where you have a lot of money. This can happen due to circumstances like relationship breakdown or reduction in your personal monthly income, requiring a need for a cash injection through a home sale.

Prior to committing to buy a home, it can be beneficial to contact an experienced first time buyer in Hull as we will be able to explore mortgage insurance like critical illness insurance for you from circumstances that may affect you and your mortgage, like unexpected illness or even death. With this in mind, it’s not just an investment, this is your home, where you will be creating a life for yourself. The key thing here is finding something that is suitable for you and your circumstances.

Will a mortgage be cheaper than renting? 

Usually, your mortgage payments will be cheaper than monthly rental payments. This may not apply to everyone, but it is likely to be the case. Interest rates are known to go up and down, which means your mortgage payments vary depending on the month.

Generally, people go down the route of a fixed-rate mortgage as a way to prevent this. With a fixed-rate mortgage, you will keep payments consistent for a set duration of your term, creating a sense of stability for both yourself and the lender. When it comes to renting, your payments will go two ways, they may stay the same or become more costly. It is quite rare for a landlord to lower the rent.

Providing Security & Stability

For many, owning a home can create a sense of stability for some people and their families. In the case where you can afford your mortgage payments, this means that as long as you still wish to live there, nobody can force you to leave the property, which is something that isn’t always the for private tenants.

Even though you have some protection as a renter, the landlord may want their property back, resulting in your being stuck in what you can do. You may find that the landlord will give you first refusal (the ability to buy the property before it goes to market) so it can avoid the stress and costs of advertising with an estate agent.

Flexibility 

On the other hand, renting is a more flexible option compared to being a homeowner. For instance, if you found a job in a new area, you have more freedom to hand in your notice and relocate to that new area so you can pursue that career. This may be nice, but it doesn’t apply the same to homeowners, because you will then need to figure out regardless of if you want to sell your home or rent it out. Both processes can be expensive and time consuming.

If you do fancy a change in scenery or are unsure of how long you will be around the area, buying may not be the option for you to take. Home buying requires long-term stability and can be looked at as more of an investment in both money and time.

Repairs 

If you are in a rented property, it’s the landlord’s job for any repairs needed on the property they are renting out to you. When it comes to getting these repairs carried out, some landlords are better than others. Therefore, be prepared to fix some minor repairs yourself if you’re renting and encounter anything that needs carrying out. In terms of homeowners, they have full responsibility for their own repairs and normally the condition of a mortgage will include the property being insured to protect the lender from losing out in the event of something happening to it.

In spite of it being the more popular option, owning a home of your own isn’t the best option for everyone. Young couples may find that renting together is a brilliant way to get an insight in what living together would be like. In some cases, it may not always work out the way it should and removing a name from a mortgage can be a challenging process.

Home buying can be a big commitment and one something doesn’t do on a whim, it requires careful planning. If you are currently renting, you may be finding it challenging to save up for a deposit. At the end of the day, many people go for buying instead of renting, however, this isn’t always the case for everyone. Through our experience providing open and honest mortgage advice in Hull, we do find that customers rather buy as they see it as the better option compared to giving someone else the money to live in a house they have limited freedom of. It’s all about buying, therefore, you need to be in a financially stable position prior to buying a home.

Moving Home in Hull with a friend(s) / family member?

In the circumstance where you are looking to rent or buy with a friend or partner, as a mortgage broker in Hull, we do advise that you only get a mortgage if you have lived with your friend or partner before.

Sometimes, we find that issues arise from customers who have locked into a mortgage deal with a new friend or partner. This is definitely the case that circumstances have changed and one of you wants to move out of the property. It’s not as straightforward as simply removing your name from the mortgage.

For those looking at removing a new, you will need to reach out for Specialist Mortgage Advice in Hull to get things sorted.

Our team are available 7 days a week

With the knowledge you now have about the pros and cons of buying a renting, it’s now time to look at your options. Think about your situation, how each option will benefit you as well as if the option is in line with your future plans.

These are factors that will have a significant impact on your life. Many people list out pros and cons of each option which seems to be helpful to them.

When it comes to the overall data of these two options, most people look to buy instead of rent as it is a good option for them to start their homeowning journey as a first time buyer in Hull.

Furthermore, many of our customers would rather pay towards their own mortgage than pay towards someone else’s. For more information on buying vs renting, book your free mortgage appointment today to discuss your options with a dedicated mortgage advisor in Hull.

Last Edited: 07/02/2023