Buying a home instead of renting is saves you loads of money £££ $$$$

New research claims that the average property owner could save £325,000 over a 30 year period when compared to renting. This figure does not even take into consideration any possible house price increases.

At the end of the 30-year period, buying would also give the homeowner £218,800 in equity from paying off their initial 95% loan-to-value mortgage of that amount.

You save money buying your home

But the claimed savings depend on interest rates on home loans remaining at the historically low-levels that they are at now.

It should be noted that the research, factored in rent starting at the current national average of £11,292 a year and rising by an annual 2% .

The research also included the costs of buying a home such as purchase costs, maintenance and buildings insurance and works on the basis that the buyer starts with a 5 per cent deposit mortgage.

The research claimed that home loan interest rates would have to be in excess of 11.5% throughout the life of a loan before owning and renting produced equal expected financial returns.

Record low cost of fixed mortgage rates

The cost of fixed rate mortgages has fallen again.

Skipton Building Society has launched a two year fixed (Aug -2011) at 2.48 per cent. It is the cheapest short-term deal available, but there is a catch.

Borrowers need at least 40% equity or a deposit and there is a 3196 application fee plus a 31,800 completion fee.

Chelsea, part of Yorkshire Building Society, has launched the lowest ever 5 year fixed rate at 3.39%.  There is a £1,1495 fee and borrowers need a 30% deposit.  Chelsea has also launched 5, 6 and 7 year fixed rates.  Borrowers with a 30% deposit can get a 3.99% rate regardless of the term.  This rises to 4.89% for those with 20% equity or 5.39% for 10% equity.