For years, renting has been the go-to option for many people across the UK, especially first-time buyers trying to save for a deposit. But thanks to falling mortgage rates and changes in lender affordability rules, the tide is beginning to turn.
In fact, buying a home is now cheaper than renting in many parts of the country, and Wigan is no exception.
Mortgage Payments Are Catching Up With (and Beating) Rents
According to new data from Hamptons, the average monthly mortgage payment for a 90% loan-to-value (LTV) mortgage is now around £1,315. That’s roughly £50 cheaper than the average UK rent of £1,365.
This marks a big shift from just a few months ago, when mortgage costs were consistently higher than rents. The recent drop in interest rates has been a game-changer for buyers, especially those with access to competitive fixed-rate deals.
Lenders Are Making It Easier to Buy
In May, the Bank of England reduced the base rate to 4.25%. Lenders quickly followed with lower fixed-rate mortgage offers. Many now sit below 4%, with options available for buyers with as little as a 5% deposit.
According to Moneyfacts, the number of 5% deposit mortgage products rose to 458 in May. That’s the highest level since 2008. This is great news for renters who’ve struggled to save a large deposit while also paying high monthly rent.
At the same time, mortgage affordability tests are being relaxed, giving buyers more access to the funds they need. Zoopla reports that average stress test rates have dropped from 8 to 9% down to around 7 to 8%. This increases borrowing power by up to 15% for many applicants.
Family Support Is Helping First-Time Buyers
Buying a home is still a big financial step. But many first-time buyers are getting a helping hand. According to Savills, 39% of first-time buyers in early 2025 received some form of financial support from family members. That’s up from 37% in the previous quarter.
With mortgage costs now lower than rent in many cases, that kind of support could make a real and lasting difference, especially in a competitive market like Wigan where demand remains strong.
A Turning Point for First-Time Buyers
While the cost of living is still high and uncertainty remains in some areas of the economy, the numbers suggest we’ve reached a tipping point. With falling mortgage rates, more flexible lending, and a growing supply of affordable homes, buying is once again a realistic and sensible option for many renters.
Thinking About Buying Your First Home?
If you’re currently renting and wondering whether now’s the right time to make a move, we’d be happy to help. From helping you understand your mortgage options to finding the perfect first home in Wigan, our team is here to guide you every step of the way.
Get in touch with us today to book a viewing, speak to a mortgage advisor, or explore your options.