There are many people that cannot decide whether it is better to rent rather than have a mortgage and there are a lot of factors to consider. The cost does tend to be the main consideration for most people and so it is worth looking at it in some detail.
If you compare how much someone pays for a mortgage on a property and how much the same property would cost for rent, you will normally find that the mortgage is cheaper. If you are renting social or community housing or living in a council house, then the rent could be cheaper than a mortgage. However, this cost is not the only cost that a home owner has and so you need to consider the extra costs that a mortgage holder has, compared to a person who is renting.
Although a renter may pay contents insurance if they wish to, a mortgage holder will not only have this choice but they will also need to have buildings insurance. The mortgage company will have part of their contract where they agree to take out an insurance which will cover the amount of money borrowed on the mortgage. This means if the home is somehow destroyed, the mortgage will be repaid using the insurance and so the lender will get their money back. The insurance company will also insist that whoever