by Mark Johnston
Second Steppers Struggle to Move up the Ladder….
Research by the Post Office showed those currently living in their first home bought their property at age 28, but expect to have to wait 14 years before they can afford to move up the ladder.
According to previously conducted research between 1965 and 1969, second time buyers had to wait just three years before moving into their second home. The average age of first time buyers was 25, while the average age of second time buyers was 28.
This said, many potential home buyers have been unable to secure a mortgage since the market stalled during the 2007 financial crisis when mortgages that required little or no deposit vanished almost overnight
Over a quarter of second time buyers are finding it difficult to move because of negative equity claims a new report.
Many second steppers bought their first home around the height of the property boom, meaning that they might have struggled to move on as they have little or no equity left in their property.
Recent data has revealed that more than a quarter (28%) of second time buyers could be stuck on the first rung of the property ladder because they are in negative equity or their home has not increased enough in value for them to buy their second home
It seems that in the years before the financial crisis it was almost guaranteed your property would go up in value enough to move into a second, larger home. However, now many home owners are finding that their homes just are not increasing in value enough to fund this move.
Current figures have also shown that almost one in three home owners are unable to move up the housing ladder because of the high costs involved.
Home owners trying to take their second step on the housing ladder have seen their trading up costs more than double over the last decade.
Therefore is appears that relying on the bank of mum and dad is not just the preserve of first time buyers, second time buyers are also looking to their parents to fund the move up the ladder.
Marc Page, mortgages director at Lloyds TSB, said: “Parents have long been helping to fund their children’s first home, but many are now having to provide further support as they move up the ladder.”
John Willcock, the head of mortgages at Post Office, said: “We are often reminded of first time buyers’ struggle to get onto the property ladder. However, it is clear that second time buyers are finding it difficult too.”
The council of mortgage lenders (CML) director general Paul Smee has also stated “We hope that the new initiatives announced by the government in the 2013 Budget will help those ‘second steppers’ looking to move into a new or existing home.”
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