That 7 years figure is absolute nonsense. Even in more "normal" interest rate periods (pre-2008) the advice was 2-3 years (mainly because of property taxes).
For example a three bed house might be £1200 to rent, but even at a 4% mortgage a £250k house costs roughly the same in mortgage payments and only roughly £400 will be interest payment each month.
In 7 years that's £67,200 in equity the home owner has accrued while the renter has nothing. Even taking off fees of a few thousand shows your sums are very, very, very wrong.
Worse still, if you're talking about the LAST 7 years you've made an even bigger mistake. Because interest rates were so low you'd have been paying much less in interest and had you been overpaying your mortgage as if you'd been paying the rent for the same property you could probably have accrued £80k in equity. Plus all the house value increases, probably add on another £50k.
So if you listened to this person 7 years ago it would have cost you £130,000. Not just a little bit wrong in their advice, but staggeringly, stupendously, wrong.
And I say this as someone who made this mistake 20 years ago and cost myself probably £150k+.
Always overpay your mortgage when the interest rate is low!
For example a three bed house might be £1200 to rent, but even at a 4% mortgage a £250k house costs roughly the same in mortgage payments and only roughly £400 will be interest payment each month.
In 7 years that's £67,200 in equity the home owner has accrued while the renter has nothing. Even taking off fees of a few thousand shows your sums are very, very, very wrong.
Worse still, if you're talking about the LAST 7 years you've made an even bigger mistake. Because interest rates were so low you'd have been paying much less in interest and had you been overpaying your mortgage as if you'd been paying the rent for the same property you could probably have accrued £80k in equity. Plus all the house value increases, probably add on another £50k.
So if you listened to this person 7 years ago it would have cost you £130,000. Not just a little bit wrong in their advice, but staggeringly, stupendously, wrong.
And I say this as someone who made this mistake 20 years ago and cost myself probably £150k+.
Always overpay your mortgage when the interest rate is low!