Over 39% of ‘second-time buyers’ (second steppers) are concerned about interest rates increasing and 35% believe that it will be more difficult to sell their home this year, according to Lloyds Bank, which has recently launched their Second Stepper report.
However, second steppers can expect an average equity injection of £85,877 for their next home; nearly £20,000 more than the £68,629 they could have expected to receive four years ago, based on the latest house prices figures. Despite this, the figures suggest that there is a lack of confidence about selling among this group, though significant improvements have been made to market conditions over the past five years.
The average price gap between the sale of second steppers first property and their second property is now £135,985. This means that, when taking the equity injection into account, second steppers will only need to add an extra £50,108 to their existing mortgage.
There are substantial regional variations in the size of this price gap, as second steppers in Northern Ireland will need to find an average of £73,499 to purchase their second home, whilst buyers in London will need an extra £330,599.
Lloyds Bank mortgage director Andrew Mason commented: “The interest rate we saw late last year marks the first increase first-time sellers have seen since becoming homeowners and even though it was small it has caused some concern.”
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