Buying a home is a dream of most people. Climbing onto the property ladder is a goal and while it is certainly not an easy task with the need to save a hefty deposit, for most it is the ultimate and most expensive investment they will ever make in their lifetime. As far as the investment viewpoint of buying into a property that will hopefully increase in value and could one day be sold for a hefty profit, a recent report reveals that simply owning instead of buying could leave a homeowner with a savings of £133,700 in the course of 30 years.

In addition, it is estimated that the homeowner could be better off over 30 years, even if house prices never rise, by £352,500 when combining the savings of not paying rent and paying off their mortgage. Mortgage interest rates would have to be at a level of 11.5% for the scenario to divert.

The research by the Intermediary Mortgage Lenders Association calculated the data on an average monthly mortgage for a £230,000 home with a 95% loan to value mortgage.

In 30 years, a renter could expect to pay out £451,600 over 30 years in contrast to only £317,900 in mortgage repayments if interest rates remain at their current level. The data took into consideration of at least a 2% annual rental increase. Homeownership data was calculated taking into account costs of maintenance, insurance and the home buyer starting out with a 5% deposit with the mortgage.

Climbing onto the property ladder for homeowners in today’s lending market offers low interest rates, lower asking prices from home sellers, and more creative mortgage products such as 100% loan to value mortgages and long term fixed rates with attractive interest rates.

The market is so attractive that more first time buyers are expected to purchase a home than any other demographic this year. The opportunity to be a homeowner and save a substantial amount of money over the course of a few decades, rather than renting is even more motivation for hopeful home buyers to take advantage of today’s housing and lending markets.