According to a study by Lloyds Bank, homeowners are having difficulty moving up to the second rung of the property ladder.
Nearly a quarter of ‘second steppers’ say that it is more difficult to move up the property ladder than buying a home in the first place, according to the survey. More than a third state that they will postpone starting a family as they are unable to move to a larger home, while another 12% of respondents state that they will have fewer children than they originally intended due to not being able to move up the ladder.
A change of career has been necessary for 13% of respondents so that they can afford to move to another home. The homeowners known as ‘second steppers’ are usually young families and couples who are looking to move out of a first-time buyer home, to a larger property with a garden. Over half the respondents blame the record low interest rates, as they find it difficult to save enough to move home, while more than a third blamed a lack of demand from buyers, as they were unable to sell their current property. Lowering the price to attract buyers would only be considered by 9% of respondents.
Other factors blamed for the inability to move up the property ladder included increased stamp duty costs and moving costs. CeMAP qualified mortgage advisors can help all buyers, including second steppers, to find the most affordable mortgage for their requirements.