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Purchasing a home with a mortgage in several major cities across the UK could be more cost-effective than renting, even with a small deposit, according to research by Lloyds Bank.

The study compared typical monthly rental costs with potential mortgage payments for first-time buyers in 11 major cities. In nine of these cities, owning a home could prove less expensive in terms of monthly mortgage payments than renting, the research suggested. Amanda Bryden, head of mortgages at Lloyds, said: "We know that saving for a deposit is one of the biggest hurdles for first-time buyers. With rents having risen sharply over the last two years, many are already managing monthly payments that are higher than a typical mortgage.

She added: "That's why low-deposit mortgages could be the right solution for many - helping people move from renting to owning sooner than they thought possible. It's also important to consider other upfront costs like legal fees and moving expenses - but for most, the long-term savings will outweigh these."

Individual circumstances will differ, and the research made several assumptions, including that a buyer would have a 5% deposit and be paying a 4.78% interest rate fixed for five years, with a 30-year repayment term.

Lloyds used data from the Office for National Statistics (ONS) to calculate average first-time buyer property prices and average rental figures. While the research considered potential mortgage payments, it did not include costs such as legal fees or other ongoing expenses associated with homeownership.

London was excluded from the analysis due to its significantly higher property prices and different affordability dynamics, Lloyds said.

The typical 5% deposit needed could be around £11,412, based on an average first-time buyer property price of £228,233, the research found.

Among major cities outside London, the largest gap between owning and renting, as measured in the study, is in Glasgow, where mortgage payments are approximately 32% cheaper than rent.

According to calculations by Lloyds, home buyers could potentially save £396 a month, or £4,752 a year, compared with renting.

The bank stated that with an average first-time buyer property price of £172,000, a deposit of just £8,600 could be enough for some people to get on the ladder.

Newcastle was ranked second for savings, with first-time buyers paying 20% less on average for a mortgage than they would in rent, making a potential monthly saving of £217, or £2,604 a year.

With an average first-time buyer property price of £180,000, a deposit of £9,000 may be sufficient for some people to step onto the property ladder.

Even in cities such as Cardiff and Sheffield, where renting worked out slightly cheaper in the short-term in the Lloyds study, the longer-term benefit of building up equity in the property could outweigh the difference, the report suggested.

While purchasing a home may be more cost-effective than renting in certain situations, some individuals may opt to rent for the added flexibility and mobility it offers, particularly for work-related reasons.

Ms Bryden added: "The impact of growing equity in your own home - money that would otherwise have been lost in rent - means a more secure financial future. For anyone thinking about buying, speaking to a mortgage adviser or broker is a great first step."

Here are the average first-time buyer house prices, followed by the typical amount needed for a 5% deposit, the monthly mortgage cost, the monthly rent, the percentage saving from having a mortgage rather than renting, the monthly saving, and the annual saving, according to Lloyds' calculations. Where minus figures are shown, renting was found to be less expensive than mortgage payments:.

• Glasgow, £172,000, £8,600, £855, £1,251, 31.7%, £396, £4,752.
• Newcastle, £180,000, £9,000, £895, £1,112, 19.5%, £217, £2,604.
• Edinburgh, £243,000, £12,150, £1,208, £1,392, 13.0%, £184, £2,208.
• Bristol, £311,000, £15,550, £1,547, £1,778, 13.0%, £231, £2,772.
• Manchester, £234,000, £11,700, £1,164, £1,317, 11.6%, £153, £1,836.
• Nottingham, £183,000, £9,150, £910, £996, 8.6%, £86, £1,032.
• Leeds, £209,000, £10,450, £1,039, £1,098, 5.4%, £59, £708.
• Liverpool, £167,000, £8,350, £830, £864, 3.9%, £34, £408.
• Birmingham, £208,000, £10,400, £1,034, £1,068, 3.2%, £34, £408.
• Cardiff, £231,000, £11,550, £1,149, £1,138, minus 1.0%, minus £11, minus £132.
• Sheffield, £190,000, £9,500, £945, £893, minus 5.8%, minus £52, minus £624.