Buying vs Renting a Property in Newcastle

Mortgage Advice in Newcastle for Home Buyers and Renters

Is it better to rent or buy in Newcastle? | MoneymanTV

[14:10] Michael Sallabank

Taking out a mortgage is a large financial commitment, so it’s important to evaluate your options ahead of time if you’re to be a first time buyer in Newcastle. One of your primary questions may be “Which route is right for me? Buying a house or renting a house?”

It all depends on affordability. If you have the right amount of deposit, in certain areas of Newcastle, the average monthly rent may be higher than your mortgage repayments, making buying a much better choice.

If you can either rent or put down a deposit on a property in Newcastle. We hope this article is going to aid potential First Time Buyers in Newcastle when it comes time to make that final decision.

Buying a House in Newcastle

Often, especially in the younger generation, parents will encourage you to save towards a housing deposit. There are pros to doing this, but there are cons too.

Mortgage Payments

It all depends on the type of mortgage you are on and the area you are looking to move to. In some parts of Newcastle, your monthly repayments may be cheaper than renting.

For example, if you are placed on a tracker mortgage, this tracks the Bank of England’s base rate. Meaning you will know each month what your monthly mortgage repayments will be, and it may be much lower than renting. However, the Bank of England’s base rate has been known to fluctuate.

Whereas, If you were to be placed onto a fixed-rate mortgage, your payments would remain the same each month right until the end of your fixed term.

Owning Your Own Home

You will always have that sense of comfort within your own home. No one can force you out of your own home and do what you want as you are the property owner.

Whereas being a tenant leaves you with next to no protection against the property owner wanting you out. Yes, they will have to give you notice, but at the end of the day, the landlord owns the property, not you.


The property market can be unpredictable, the good news is sometimes it is in your favor and you find out that your house is going to go up in value. But this can work both ways and unfortunately, your property price can also go down in value.

Get Mortgage Advice in Newcastle Before Rushing into a Purchase

Buying a home is a huge financial commitment and avoid rushing into a property purchase unless you are adamant that you are ready to do so or speak to an expert Mortgage Advisor in Newcastle to check your eligibility.

If you are eligible to take out cover, we recommend you speak with a Protection Advisor in Newcastle to find out your options. For example, if you have critical illness cover in place and you cannot work due to an illness that’s listed in your policy, then you’ll be covered. As we’ve said before, you can always get the right advice from a Protection Advisor in Newcastle.

Renting a property in Newcastle 

Depending on your circumstances, renting could be the best choice for you. Whether you have a small deposit saved, or you would like to obtain a mortgage with a friend or partner. Here are the pros and cons of renting instead of looking to obtain a mortgage.


A mortgage is a massive financial commitment, you should be thinking about where you can realistically see yourself in the next 5 years. Whereas, when you are renting, you are only fixed for six months to a year.

During that time, you can put some money away for a housing deposit or if you have received a gifted deposit, you can move out when your lease ends or when you have keys to your new property.

If you cannot imagine yourself living in Newcastle for an exceptionally long time, you should consider the idea of renting. There is no point in obtaining a mortgage if living in a certain part of Newcastle is just a temporary part of your life.


Depending on how major the incident is, your property owner is responsible for any repairs on the property. In terms of how long the repair take can, some may take days, weeks, or months to get back to you.

Whereas others can get right back to you within 24 hours. Make sure to do your research and check out the comments and recommendations before you go ahead with any estate agents.

Major repairs should be managed by the property owner and minor repairs should be taken care of by you. Whereas if you are the property owner, you will have to take care of all the repairs and damages linked 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. 

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