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UK rental costs are the highest in Europe but homeowners are benefiting from cheap mortgages, data suggests.

Tenants typically spend 39.1% of their income on rent compared with a European average of 28%, figures from the National Housing Federation suggest.

Lenders have been trying to encourage owners to switch to fixed-rate mortgage deals.

"More of the banks and building societies are actively targeting their existing customers and offering them new deals" - Aaron Strutt, of mortgage brokers Trinity Financial told the BBC.

"Rates are so cheap at the moment that there are often savings to be made even if you are on one of the super-low tracker mortgages."

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