Rental properties to the rescue of mortgage-starved couples

03/04/2008

Paul and Kelly Monds wanted to buy the flat they were renting in Edinburgh. But the couple were warned by their bank they would be unlikely to get a mortgage.

Paul, 33, who works in the car industry, and Kelly, 28, a nurse, earn £45,000 between them. They had hoped to buy the one-bedroom flat in Stockbridge when it was put on the market for £200,000.

Kelly said: “I went to NatWest to inquire about a mortgage and they were a bit ‘iffy’ about the whole situation. We realised that our monthly repayments would be more than the £500 we pay in rent.”

David Alexander, head of Scotland’s largest independent residential letting agency, said rents in Scotland’s two main cities had risen by 20 per cent since January because of demand from those unable to purchase a home.

THE SCOTSMAN, 3 April 2008



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