"For many renters, the key calculation is no longer just the deposit; it's whether the monthly mortgage payment could match what they already pay in rent"
- Rachel Geddes - MAB
Nearly half of renters would buy a home immediately if their monthly mortgage payments matched what they currently pay in rent, according to new research from Mortgage Advice Bureau (MAB).
The findings point to a clear shift in how aspiring buyers assess affordability, with monthly costs now shaping decisions alongside, and in some cases ahead of, deposit requirements.
The data is striking: 47% of renters say they would act straight away if mortgage payments aligned with their rent, while 31% say the prospect of paying the same or less each month is one of their biggest motivations for buying. Together, these figures suggest that perception of monthly costs, rather than the deposit hurdle alone, is what is holding many prospective buyers back.
A mindset shift around monthly costs
Demand for homeownership remains strong. Among renters, 41% want the freedom to decorate or own pets, and 37% are focused on building long-term wealth. Only 17% cite flexibility as a key reason for renting, reinforcing that for most people, renting is not a deliberate long-term choice but a position shaped by affordability concerns.
While saving for a deposit and rising property prices are well-established challenges, the research suggests monthly affordability has become a critical psychological barrier in its own right.
Many renters are delaying the decision to buy, not because they lack aspiration, but because they assume homeownership will cost significantly more each month than their current rent. Greater awareness of how mortgage payments can align with, or in some cases fall below, rental costs could be the trigger that converts that latent demand into action.
Lenders, including Nationwide, say the findings reflect what they are seeing across the market, with buyers increasingly focused on how mortgage repayments compare to rent.
"For many renters, the key calculation is no longer just the deposit; it's whether the monthly mortgage payment could match what they already pay in rent," said Rachel Geddes, strategic lender relationship director at MAB.
"What we're seeing is a shift in mindset, with buyers increasingly focused on their monthly outgoings and whether homeownership feels manageable in the context of their current finances.
"Without clear comparisons between renting and owning, it's easy for many to assume that buying is out of reach. Digital tools such as our affordability calculator can help give buyers a clearer idea of what they may be able to borrow and what their monthly payments could look like.
"With the support of an expert mortgage adviser, understanding what's possible, particularly in terms of monthly costs, can be the difference between holding off and taking that first step onto the property ladder. For many, that clarity could be the 'sign' they've been waiting for to kickstart their homebuying journey."
Borrowing more, bridging the gap
Carlo Pileggi, head of mortgage products at Nationwide, said the moment renters understand how mortgage payments can compare to rent, the picture changes entirely. "As this research shows, when renters realise that mortgage payments could be comparable to what they already pay each month, homeownership can suddenly feel achievable, and renters might be surprised at how much they can borrow and how the monthly costs compare to their rent," he said.
"At Nationwide, we've continually focused on giving first-time buyers a helping hand to tackle the affordability challenge. By enabling prospective homeowners to borrow more, we've been able to help them turn long-held homeownership aspirations into a realistic and affordable route onto the property ladder. Using online affordability calculators and seeking expert advice will help a lot of renters see that buying may not be as far off as they think."
The research underlines a broader opportunity for lenders, brokers and advisers. For a significant portion of the renting population, the barrier is not financial reality but financial perception. Closing that gap, through better tools, clearer comparisons and accessible advice, may be what moves many aspiring buyers from hesitation to action.
