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Buying vs Renting a Property in Newcastle

Mortgage Advice in Newcastle for Home Buyers and Renters

Deciding between renting and buying a home, especially as a first time buyer in Newcastle, requires careful consideration and evaluation of your financial situation. Both options have their pros and cons, so it’s important to weigh them against your specific circumstances and priorities.

One of the key factors to consider when deciding between renting and buying is affordability. If you have enough savings for a substantial down payment, you may find that your monthly mortgage payments are lower than the average rent in some areas of Newcastle. In this case, owning a home may be a more cost-effective option for you.

However, if you do not have a substantial down payment, it may be more financially feasible to rent a home in Newcastle. Additionally, owning a home also involves additional costs such as property taxes, insurance, and maintenance expenses. So, it’s crucial to factor in these costs when evaluating the affordability of owning a home.

Ultimately, the decision between renting and buying a home in Newcastle will come down to your personal financial situation, future goals, and lifestyle preferences. By taking the time to carefully consider all of these factors, you can make an informed decision that best suits your needs.

Buying a House in Newcastle

Many parents, particularly among the younger generation, advise their children to start saving early towards a housing deposit. While this approach has several advantages, it is important to consider the potential disadvantages as well. By carefully weighing the pros and cons, individuals can make an informed decision on whether this approach is right for them

Mortgage Payments

The cost comparison between monthly mortgage repayments and renting depends on several factors, including the type of mortgage and the location.

In some areas of Newcastle, a tracker mortgage may provide lower monthly payments than renting. Tracker mortgages follow the Bank of England’s base rate, which means that you will know each month what your payments will be. However, it’s important to note that the base rate is subject to change, and if it rises, your monthly mortgage repayments may increase.

On the other hand, a fixed-rate mortgage offers stability and certainty, as your payments remain the same each month for the duration of the fixed term. This can provide peace of mind, as you won’t have to worry about changes to the Bank of England’s base rate affecting your monthly payments.

It’s important to consider both the type of mortgage and location when comparing the cost of monthly mortgage repayments and renting, as each situation is unique and will have different factors to consider.

Owning Your Own Home

As a homeowner, you enjoy a unique sense of security and comfort within the walls of your own home. You have the ability to live your life as you see fit, without the threat of eviction or interference from others. The ownership of the property gives you a sense of control and stability that cannot be found as a tenant.

However,as a tenant, you are in the hands of the property owner, who holds the ultimate power in deciding whether or not you can continue to reside in the rented space. Although landlords are legally obligated to give tenants proper notice before eviction, it is important to recognize that the property belongs to the landlord and not to the tenant. In this sense, the level of protection and security afforded to tenants is significantly less than that of homeowners.


The property market can be unpredictable, and it can be challenging to predict its behavior. On one hand, you may be pleasantly surprised to find that your home’s value has increased, providing you with financial benefits.

On the other hand, the value of your property may also decrease, leading to financial loss. In either scenario, it is important to understand the market forces at play and make informed decisions about buying, selling, and investing in property.

Mortgage Advice in Newcastle

Before making a major financial commitment like buying a home, it’s important to see if you’re ready. If in doubt, consult with a mortgage advisor in Newcastle to determine your eligibility. If you’re eligible, consider speaking with a protection advisor in Newcastle to explore your options for insurance coverage.

For instance, if you have critical illness insurance and become unable to work due to a covered illness, you’ll be protected. For the best guidance, seek advice from a protection & mortgage advisor in Newcastle.

Renting a property in Newcastle 

Renting may be a more suitable option for you, depending on your current situation. It is worth considering whether you prefer to save for a large deposit to buy a property, or whether you would like to explore the possibility of sharing a mortgage with someone else. Before making your decision, it is important to consider the advantages and disadvantages of renting versus owning a property through a mortgage.


When considering a mortgage, it’s important to think about your future plans for the next 5 years. Renting, on the other hand, only requires a commitment of 6 months to a year.

This can provide an opportunity to save for a down payment or move into a new property when your lease ends or when you receive the keys. If you don’t see yourself living in Newcastle long-term, renting may be a better option rather than taking on a mortgage.


The responsibility for repairs on a property depends on the severity of the issue. Repairs can take anywhere from a few days to several months, so it’s important to research and read comments and recommendations before choosing an estate agent.

The property owner is responsible for major repairs, while minor repairs are the tenant’s responsibility. If you are the property owner, you will be responsible for all repairs and damages related to the property.

Moving Home in Newcastle with a friend(s) / family member? 

When you decide to buy or rent with a friend or partner, as a Mortgage Broker in Newcastle, we suggest you only obtain a mortgage if you have had experience living with your friend or partner before.

Being tied into a mortgage deal with a new friend or partner will likely cause problems down the line, especially if you have a change of thought and want to move out of the property. It’s not always as easy as it seems to get your name removed from a mortgage.

Removing a name can often require specialist mortgage advice in Newcastle to get this sort of thing moving.

We’re Here to Help

Now that you know some of the pros and cons of buying and renting, you should now weigh up your options. Which is right for you? Which will benefit you most? Where do you see yourself in 5-10 years?

These are questions to consider during any big decision in your life. Some people prefer to make a list of the pros and cons, that seems to always help!

When it comes down to the numbers, the majority of people choose to buy over rent, they see it as an early opportunity to get themselves onto the property ladder as first time buyers in Newcastle.

We tend to find others would also rather the money go towards their mortgage rather than paying somebody else’s. If you need more renting vs buying advice in Newcastle, book your free mortgage appointment today to speak with one of our Mortgage Advisors in Newcastle today. 

Date Last Edited: April 14, 2023

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