The debate between buying and renting a home is both long-lasting and complex. And while which one you ultimately choose will depend on what your priorities are, there are a lot of advantages that come with choosing to get a mortgage and buy a house. Such as the following.
1 – Mortgage has an end
The biggest advantage of getting a mortgage is that you eventually won’t have one anymore, because your home will be fully paid up. This not only gives you something to work towards, but it also allows you to do some clever things with how you plan your finances. For example, if you’re on a stable career path and you know when you’re going to retire, you can line things up so you’ll pay up your mortgage just as you’re retiring. Retirement often means having less income, and paying your mortgage up around that time will reduce the financial stress on your family.
2 – Mortgages give you more options
When you’re renting a home you’re stuck with a landlord. And while you can renegotiate your deal with them, you can’t switch landlords without switching homes. You can, however, transfer your mortgage to a different bank or agency before you’re fully paid up. This allows you to seek better deals, better terms, or just switch for a bank that provides better customer service, all without leaving the home you’ve invested time and money into.
There is also a wealth of options when it comes to getting your mortgage, which can be done through different methods. According to the official 1st UK Money site, some mortgage brokers even specialize in helping clients who have low credit scores get approved for mortgages, which might be just what you need to get out of paying rent.
3 – Homes are an investment
Homes double as a utility and an investment. While your car and your phone will only lose value as time goes by, home prices in the UK have almost tripled in the last 20 years. And that’s a growth that shows no signs of slowing down. This also makes mortgages useful if you have struggled to save money in the past since paying up your mortgage is essentially saving money for the future.
4 – Your home your choices
Rent contracts come with all sorts of rules determining what you can and can’t do in the property. That’s not a problem when you own the house. Even if you have only made a single payment on your mortgage, the house is still yours to do what you want with it. This includes being able to renovate and make changes, but also includes using the house to make money.
For example, while rent contracts often forbid subletting, nothing is stopping you from renting a spare room or the basement when you own the house.
5 – Rents go up
The increase in housing prices was also accompanied by an increase in average rent prices. Having a mortgage allows you to avoid dealing with rent increases since the amount you have to pay every month will stay the same.