In many UK cities outside London, buying a home with a low-deposit mortgage can be more affordable than renting⁶. 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.
💷 Calculations assume a typical FTB property price of £228,233 with a fixed interest rate of 4.78% over 30 years. 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 the data underlines the financial case for buying in many areas, homeownership isn’t right for everyone. Job flexibility, lifestyle preferences, and long-term plans all matter. For many FTBs ready to commit, the findings suggest that ownership could be more affordable than staying in the rental market. 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.
🚨 Data accurate as of the date of publication
🚨 Your home may be repossessed if you do not keep up repayments on your mortgage.
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, mortgage, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
ℹ️ Based on: Quilter Financial Services – Essentially Mortgages Q1 2026
