The average monthly rent, excluding London, is £420 while the average monthly mortgage repayment is just £334 fro a first time buyer.
The research reveals that those renting outside London could save up to £1,040 a year – or £87 every month – if they buy instead of renting.
Despite the average monthly rent in London standing at £701 it would still cost first time buyers £359 extra per month on mortgage payments.
The average national property price was put at £115,657 by the bank meaning that if a first time buyer took out the average mortgage with an LTV of 75%, according to the Council of Mortgage Lenders, it would require a deposit of £28,914.
Phil Cliff, director of mortgage marketing at Santander UK says: “People have been justifiably cautious in approaching the housing market in recent months but this research strongly supports the idea that in the majority of cases owning can be less expensive than renting.
“The now ‘average’ LTV of 75 per cent for first-time-buyers has provided an obstacle in some cases but saving for a deposit is clearly a wise move. “