Second time buyers find it more difficult to move home than a decade ago with higher deposits, moving costs and lack of suitable housing.
Research from Nationwide reveals home movers are putting their lives on hold as they struggle to save to buy their dream home and many need financial help from family.
In the survey 86% of people living in their first home think it is harder now than a decade ago to make the jump to their second home which has an average cost of £370,539.
Despite the struggle to move, 21% of those surveyed said they were not willing to forgo anything at all on the next property they bought.
Henry Jordan Nationwide Director of Mortgages said, the focus is on the difficulties first time buyers face trying to get on the property ladder but second steppers are facing challenges of their own.
Home movers sacrifice major life decisions
In order to save towards a move second steppers are having to make sacrifices that include delaying starting a family, freezing wedding plans or change their career or job.
The main barriers to moving home are finding a home within budget (38%), finding a home in the right location (25%), having a large enough deposit (18%), not being able to cover moving costs (15%) and being in negative equity (8%).
With competition from buy-to-let investors and reduced supply of suitable properties, home movers are remaining in their existing home and saving for a bigger deposit.
In the survey 21% were stuck in a property that was too small for their family with 16% not able to live in a better area due to housing affordability.
Of those surveyed, 80% said they could be convinced to stay in their current home if they could make some changes such as an extension, new kitchen or bathroom.
People that stay in their existing home as remortgage buyers can secure competitive mortgage deals to reduce their repayments and save money for their future move.
Many have to make compromises in terms of size or location of their new home, or make spending cutbacks and personal sacrifices to move and avoid becoming stuck in a property that isn’t appropriate for their changing needs, says Mr Jordan.
Looking for the dream home
From the survey 55% want their next home to be detached and 26% want it to be their forever home while 35% said they were holding out for their dream home.
Many second time buyers were willing to compromising on the next property with 35% willing to forgo a conservatory, followed by 29% giving up a garage, 22% a driveway and 20% give up ideal schools.
In contrast the least likely items to be struck off the wish list with only one in ten willing to forgo are, the size of the bathroom, size of the kitchen or the number of bedrooms.
A significant 88% said they would consider buying a property that needs renovating if it was significantly cheaper to buy.
To buy their dream home 55% would be willing to give up nights out with 48% willing to forego eating out and 33% not having holidays or weekends away.
It could be worth finding your final home as the older equity release mortgage buyer can access the wealth in their property helping to improve the quality of life in retirement including holidays of a lifetime.
What are your next steps?
Speak to our LCM mortgage advisers if you are planning to move home, buying your first home, remortgaging your existing home to a new cost effective mortgage deal or are a buy-to-let investor.
For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to help maintain your standard of living as costs rise or pay for care at home.
Learn more by using the mortgage cost calculators, equity release mortgage calculator and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.
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