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Moving up the property ladder – how are we raising the funds? back

26/09/2017


Keen to move up the property ladder but struggling to raise the funds to do so? New research shows ‘second-steppers’ think it is harder than buying your first house and are also looking for financial assistance from those around them.

For those looking to step onto the property ladder and need help with raising the funds for a deposit, it has become common practice to borrow or take a loan from the ‘bank of Mum and Dad’. However, new research has revealed that not only is it first time buyers seeking help from friends or family to raise funds, but it has now extended to those already on the property ladder and looking to take the next step up and move on from their first home.

‘Second steppers’ are usually couples or growing families, wanting to upsize, looking for more space, gardens, or ‘nicer’ properties than their first home, but are struggling to bridge the gap even though they generally have sizeable equity, hence rallying friends, family and other means to raise the funds. Research has found that one in four are saying it is now harder to move up the ladder than it is to get onto it in the first place.

The result of this is causing a knock on effect on the general housing market, as people are now considering staying put for longer, maybe even initiating some minor renovations to their existing property, and waiting to see how the market fairs. In addition to this, the uncertainty of the current economic climate is also resulting in homeowners staying put, which in turn reduces the availability of properties for first time buyers.

That said, due to the current market circumstances, many homeowners are now consciously planning ahead by making larger contributions to their current mortgages and savings in order to prepare for when they are in the position to make a move!

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