| Mortgage repayments can be significantly cheaper than rent in many UK cities outside London | Buyers using low-deposit mortgages may save thousands annually compared with renting | Affordability varies by location, lifestyle needs and long-term personal plans |
In many UK cities outside London, buying a home with a low-deposit mortgage can be more affordable than renting on a monthly basis1.
Analysis comparing typical rental costs with first-time buyer (FTB) mortgage payments found that, on average, mortgage repayments are around 17% cheaper than equivalent rents when buyers secure a mortgage with just a 5% deposit.
The calculations assume a typical FTB property price of around £228,233 and use a fixed interest rate of 4.78% over a 30-year term. Based on these figures, the average 5% deposit would be about £11,412.
City hotspots for savings
In nine out of 11 cities analysed, owning proved cheaper than renting. Glasgow offered the most significant savings, where buyers could pay around 32% less on mortgage repayments than rent, potentially saving more than £4,750 a year. Cities such as Newcastle, Edinburgh and Bristol also showed notable cost advantages for buyers.
Making the choice that suits you
While these findings underline the financial case for buying in many areas, homeownership isn’t the right fit for everyone. Factors like job flexibility, lifestyle preferences and long-term plans all play a role. However, for many FTBs ready to commit, the data suggests that ownership could be more affordable than staying in the rental market.
1Lloyds Banking Group, 2025
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for guidance only. Some rules may vary in different parts of the UK.