Nearly half (47%) of renters would buy now if their mortgage payments matched their current rent, according to the Mortgage Advice Bureau.
Meanwhile, nearly a third (31%) say the prospect of paying the same or less than their current rent is one of their driving motivations for buying a home.
Mortgage Advice Bureau says perceptions of affordability are holding potential buyers back, offering the potential for advisors to better support clients in understanding what might be achievable and helping them realise their dream of owning a property sooner.
Buyer motivations
Potential buyers have other motivations too, such as greater freedom to decorate or have pets (41%), according to a survey by Mortgage Advice Bureau of 1,000 UK renters who plan to buy their first property this year.
Meanwhile, more than a third (37%) say their ambition is to build long-term wealth through property. Only 17% cited flexibility as a key benefit of renting.
Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau, said renters need to reconsider how they are viewing renting versus buying. “For many renters, the key calculation is no longer just the deposit – it’s whether the monthly mortgage payment could match what they already pay in rent,” she said.
“What we’re seeing is a shift in mindset, with buyers increasingly focused on their monthly outgoings and whether homeownership feels manageable in the context of their current finances. Without clear comparisons between renting and owning, it’s easy for many to assume that buying is out of reach.
The vital role of the mortgage adviser
Geddes said that affordability calculators help give potential buyers a clearer idea, but that brokers also play a vital role in clarifying their position.
“With the support of an expert mortgage adviser, understanding what’s possible – particularly in terms of monthly costs – can be the difference between holding off and taking that first step onto the property ladder. For many, that clarity could be the ‘sign’ they’ve been waiting for to kickstart their homebuying journey,” she said.
Carlo Pileggi, head of mortgage products, Nationwide, agreed: “As this research shows, when renters realise that mortgage payments could be comparable to what they already pay each month, homeownership can suddenly feel achievable – and renters might be surprised at how much they can borrow and how the monthly costs compare to their rent. Using online affordability calculators and seeking expert advice will help a lot of renters see that buying may not be as far off as they think.”
