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Buying a home with a mortgage in some of the UK's major cities could now be cheaper than renting - even with a small deposit - according to an analysis by Lloyds Bank.

The study compared the average monthly rental costs with potential first-time buyer house prices and mortgage payments in 11 major cities.

The results suggested that in nine of the cities, including Manchester, owning a property would cost less each month than renting.

But the study acknowledges that individual circumstances will vary and the research was based on having a 5 per cent deposit, a 4.78pc interest rate fixed for five years, and a 30-year repayment term.

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Lloyds used data from the Office for National Statistics (ONS) to calculate av

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