UK Rent vs MortgageCalculator
Compare renting vs buying property in the UK. Analyze upfront costs, monthly payments, and long-term equity building to make informed decisions.
🚀 How to Use This Calculator
Enter Property Details
Add the property price, your deposit amount, and mortgage details. Don't worry if you're not sure - we'll help you with realistic estimates!
Add Monthly Costs
Include rent, insurance, maintenance, and other expenses. We've included helpful examples and typical UK costs to guide you.
Get Your Analysis
See a clear recommendation with detailed charts, year-by-year breakdown, and downloadable report to help you decide.
✅ What's Included
- •All Upfront Costs: Deposit, stamp duty, legal fees, survey fees, and mortgage arrangement fees
- •Monthly Payments: Mortgage payments vs rent, including interest and principal breakdown
- •Ongoing Costs: Home insurance, maintenance, council tax, and property appreciation
- •Equity Building: How much of your mortgage payments build equity vs pay interest
- •5-Year Projection: Complete financial analysis showing your net worth over time
📊 What You'll Get
- •Clear Recommendation: "Buying is Better" or "Renting is Better" with explanation
- •Visual Charts: Pie charts showing cost breakdown and line charts showing growth over time
- •Year-by-Year Breakdown: See exactly how your money flows each year
- •Downloadable Report: Professional PDF report you can save or share
- •Net Worth Comparison: See how your wealth grows with each option
Property Details
💡 Tip: Check Rightmove, Zoopla, or your local estate agents for current market prices. UK average house price is around £290,000, but varies significantly by location.
££60,000 (20% of property value)
💡 Tip: Most lenders require 5-20% deposit. Higher deposits (15%+) get better mortgage rates. First-time buyers often use 5-10% deposits with government schemes.
💡 Tip: Current UK mortgage rates are around 4-6%. Check MoneySuperMarket, Compare the Market, or speak to a mortgage broker for the latest rates.
💡 Tip: Include your current rent or the rent for a similar property. UK average rent varies by location: London £1,800+, Manchester £800+, Birmingham £700+.
First-time buyers get reduced stamp duty rates
Required for mortgage approval
Optional fee charged by some mortgage brokers
Conveyancing and legal fees
Property survey and valuation fees
Fees will be paid upfront as part of your initial costs
Annual maintenance as % of property value (typically 0.5-1%)
💡 Tip: This covers repairs, maintenance, and improvements. Newer properties: 0.3-0.5%, Older properties: 0.7-1.2%. For a £300k property, 0.5% = £1,500/year or £125/month.
Monthly council tax for the property
Enter Property Details
Fill in the form to see your rent vs mortgage analysis
How This Calculator Works
This calculator compares the total costs of renting vs buying a property over a specified period:
- Upfront Costs: Includes deposit, stamp duty, legal fees, survey fees, mortgage fees, and moving costs
- Monthly Costs: Mortgage payments, insurance, maintenance (1% of property value annually), and council tax
- Equity Building: Tracks principal payments that build equity in the property
- Property Appreciation: Accounts for potential property value increases over time
- Rent Increases: Considers annual rent increases
Note: This calculator provides estimates based on current market conditions and typical costs. Actual costs may vary based on location, property condition, and market conditions.
❓ Frequently Asked Questions
Q: What's the difference between equity and interest in mortgage payments?
A: Your monthly mortgage payment has two parts: Interest (money paid to the bank) and Principal (money that builds your ownership/equity). Early in your mortgage, most of your payment goes to interest. Over time, more goes to building equity.
Q: Why might renting be better than buying?
A: Renting can be better if: property prices are falling, you need flexibility to move, you can invest your deposit money elsewhere for higher returns, or if maintenance costs are very high.
Q: What if I'm a first-time buyer?
A: First-time buyers get stamp duty relief on properties up to £500,000, and can use government schemes like Help to Buy or Shared Ownership. This can significantly reduce upfront costs.
Q: How accurate are these calculations?
A: These are estimates based on current conditions. Real results depend on market changes, your specific mortgage terms, property condition, and personal circumstances. Use this as a starting point for your research.
Q: What costs am I missing?
A: This calculator covers major costs, but you might also consider: moving costs, furniture, decorating, emergency repairs, service charges (for flats), and potential rental income if you move out.
Important Disclaimer
This calculator is for informational purposes only and should not be considered as financial, investment, or legal advice.The calculations provided are estimates based on current market conditions and assumptions that may not reflect actual costs or returns. Property values, interest rates, rental costs, and other factors can change significantly over time. This analysis does not account for all potential costs, risks, or benefits associated with property ownership or rental. We recommend consulting with qualified financial advisors, mortgage brokers, and real estate professionals before making any property-related decisions. Dias Global Limited does not accept any responsibility for decisions made based on the information provided by this calculator.