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Compare mortgage prices with renting

Date: Thu, 09 Jun 2005

Homeowners are being encouraged to ensure they get the best mortgage deal in order to compete with the lower cost of renting.

New figures from the Office for National Statistics show that on average mortgage holders pay £2,652 more a year than people who rent their home.

The research compared the average rents paid by tenants and average mortgages paid by mortgage holders in the UK and found a strong regional difference in the amounts people pay.

The average net rent stood at £46 a week, compared to the average weekly cost of a mortgage at £97.

However in London, tenants pay 75 per cent more than the national average at £80 a week in rent, whilst mortgage holders pay £134 per week.

Residents in the North East paid the least for their homes, just £21 per week in rent, which is 54 per cent lower than the average, and £58 a week in mortgage costs - 41 per cent lower than the UK average.

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