Renting now dearer than many mortgages

FIRST-TIME buyers can save hundreds of euro a month by buying a property instead of renting, according to a comparison index compiled by wealth management firm Financial Engineering.

The index reveals that monthly repayments on many mortgages are half what they were two years ago and in some locations almost €200 cheaper than rental costs.

With interest rates and house prices both falling sharply over the last year, monthly repayments on a 90% mortgage for a three-bed semi in Cork city is down from €2,006 to €1,029 today. The cost of renting the same property would be €1,000, according to the affordability index.