Buying a home is a significant life milestone, and for many hopeful first-time buyers it’s one that sometimes feels far out of reach – especially when you’re currently renting a home, and struggling to save for a deposit whilst making monthly rent payments.

However, stepping out of renting and onto the property ladder could be far easier – and more affordable – than you might expect, especially with the support available to boost your mortgage deposit, or even remove the requirement for a deposit altogether.

In this article we’ll further explore the question of buying vs renting a home, to help you decide which option is right for you.

Exploring the benefits of buying a home

There are many fantastic benefits to home ownership, which is why it’s such an important goal to many people. While the path to homeownership can be challenging at times, and everyone’s journey is different, it can be incredibly rewarding when you finally get there – nothing beats the feeling of collecting your keys, and stepping into your very own home for the first time.

• You’ll be paying your own mortgage, not someone else’s: It can feel frustrating to pay for the privilege of having a home, without actually owning it. Making the leap from renting to home ownership means paying your own mortgage, and not your landlord’s, and depending on your circumstances and the location of your home it could even be more affordable.
• You’ll be investing in a valuable asset: Buying a home means you’re investing your money in a valuable asset that is highly likely to maintain, or even increase its value over the coming years.
• You may not need a deposit: The difficulty in saving for a deposit is an enormous barrier to buying a home for many people, however help is available, such as the Track Record deposit-free 100% mortgage which was specifically designed to help renters get onto the property ladder.
• You can plan for the future: Buying a home empowers you to choose a property that will serve you for years to come, not only in providing you with enough room to accommodate an evolving lifestyle or for a forever family home, but also having future-focused features that can help to reduce your utility bills – like those you find in an energy-efficient new-build home.
• You can decorate however you wish: One of the most exciting benefits of home ownership is being able to create your dream interior, especially when decorating a new build home and having a perfect blank canvas to start with, completely untouched by previous owners and requiring no expensive or inconvenient renovations before you can move in.

However, an important consideration to make regarding home ownership is that taking on a mortgage is a significant commitment, of 25 years on average and possibly more. Speaking with an independent mortgage advisor could help you to feel more confident about taking on a mortgage, as you’ll receive expert advice on the different types of mortgages available, so you can choose the one that’s right for your individual circumstances.

Understanding the pros and cons of renting a home

Depending on your individual circumstances, renting a home might be the right choice for you at this time. As a renter you will enjoy many of the same rights and privileges as a homeowner, which are legally protected by your contract, while your landlord and/or estate agent retains the responsibility for major property maintenance and routine tasks such as annual boiler services.

You’ll also have the freedom to move somewhere new when your contract ends, which is a great benefit if you’d like to own a home one day, but don’t know where you’d like to live in the long term. Renting can also be a great first step towards buying a home with a partner as you can experience living together without the significant commitment of taking out a joint mortgage.

However, the downsides of renting include the lack of freedom to decorate your home as you wish, which can leave you feeling creatively stifled. You’ll also have a responsibility to keep the property in good condition, and accommodate visits from landlords and contractors, whilst having long-term uncertainty as your landlord could choose to increase your rent costs or even sell your home.

Most of all, it can feel frustrating to know that you’re paying someone else’s mortgage, and not your own, especially as there are schemes such as the Track Record deposit-free 100% mortgage that are designed to help renters get onto the property ladder.

The affordability of buying a home

As we’ve already mentioned, one of the greatest benefits of buying a home over renting is that you’ll be paying your own mortgage, and not someone else’s, and investing into an asset that is highly likely to increase in value over time. It’s also possible that your monthly mortgage payments could be lower than your rent. But that isn’t much help if you’re struggling to save for your first home mortgage deposit, and need a helping hand to get onto the property ladder.

You may be fortunate to receive a gifted deposit from a family member or friend to help you secure a mortgage, or you may benefit from one of the many buying incentives and affordable home schemes that are available to first-time buyers, including Deposit Unlock and Own New Rate Reducer, both of which could help you to buy a new build home with just 5% deposit. First-time buyers also benefit from higher stamp duty thresholds.

Even with help available, it can still be challenging to build a deposit while you are paying rent, which is why the Track Record mortgage is so revolutionary for hopeful home buyers. This deposit-free 100% mortgage is available to buyers who can demonstrate that they have been making consistent rental payments for a minimum of 12 months, and have either less than 5% deposit or no deposit saved at all.

When you buy a home, you’ll also have the freedom to choose a property that meets your needs, and you can grow into and enjoy for many years to come. This may be an older property, which you can renovate and redecorate as required – although you may need to set aside money for any work that needs to be carried out urgently, from upgrading an old boiler or fixing a leaking roof, to replacing an outdated kitchen or unsuitable bathroom.

Alternatively, you might consider a new-build home, in which everything is brand-new and ready for you to move into straight away. You won’t need to factor in any expensive renovations after you buy and you can add your personal touches to its interior at your own pace; not only that, but new homes by award-winning housebuilders like Bellway are typically more energy-efficient than a second-hand home, meaning that you will enjoy lower utility bills from the day you move in.

The lifestyle benefits of buying a home

Financial considerations aside, there are many advantages of owning a home over renting with regards to your lifestyle and wellbeing. There’s a significant comfort in knowing that your home is yours, and that you have the freedom and autonomy to enjoy the property however you wish – whether you buy a ‘forever home’ that you plan to settle down in for your lifetime, or a starter home that you’ll live in for a few years, until it’s time for your next step up the property ladder.

You can take the time to find a home that’s right for you, and ticks enough of the boxes on your home-buying checklist, rather than settling for what’s available on the rental property market. From a sought-after location with great local amenities, to having an extra bedroom for hosting guests or planning future children, and space for working from home, buying a home means you have the opportunity to choose a home that supports the lifestyle you have, or want.

Another huge advantage is that you can truly personalise the home that you buy, from redecorating rooms, to carrying out extensive renovation projects on an older home to provide you with even more space or flexibility. If you choose to buy a new-build home, one of the many benefits of buying new is that you could have the opportunity to add individual touches to its interior during the build process, by choosing elements such as your kitchen and bathroom fittings, and your flooring – so it already feels like ‘home’ when you step in for the first time.

Once you have your keys, you can move straight away into a freshly-painted and immaculately clean new home that is complete with brand-new appliances, and with Bellway you’ll also receive a 10-year warranty and insurance protection for your peace of mind.

Visit the Bellway website to find more information for first-time buyers, and details of the buying schemes and incentives that are available to help you own your ideal home instead of renting. You can also read about the truth behind some of the most common first-time buyer myths, and 20 tips that could help you to save for your first home deposit.