Homeowners blow 42k on rent before buying

Lifetime renters will pay £296,000 based on current rental prices, which are £474 a month per tenant.

Miguel Sard, head of Santander Mortgages, said: “Renting may appear to be the most financially viable option for some people, but in the majority of cases it isn’t the most cost effective.

“Over the years, payments made by rental tenants amount to a staggering sum, and these are not funds that you can recoup.”

In addition to monthly payments, most private rental tenants are also asked to put down a security deposit, which stands at an average of £657.

Only 39% of renters receive all these funds back, with landlords withholding an average of £130; 20% the original deposit.

Santander offers several Help to Buy products starting at 4.99%, with a minimum deposit of 5% of the purchase price and no booking fees on properties up to £600,000.

Also on offer is a 2-year fixed rate mortgage at 85% loan to value at 2.89%, and a 5-year product fixed at 3.99% loan to value.

Sard added: “Raising sufficient deposit funds can be one of the biggest barriers to purchase, but our new range of Help to Buy mortgages offer competitive fixed and tracker rates to buyers with a 5% deposit, while our standard products also cater for buyers with deposits of 10% or more.

“The mortgage market is extremely competitive at present, with options available to suit most budgets.”

These products, which come with Santander’s unique Homebuyer or Remortgage solutions, are available via both direct and intermediary channels.