Many existing homeowners wanting to trade up now rely on financial help from family and friends to help make the jump from their first home, says Lloyds Bank.
More ‘Second Steppers’ are having to borrow from family and friends to trade up the property ladder, with one third saying they require financial support from this source.
The average amount that Second Steppers expect to borrow is a hefty £25,450; that is after typically receiving financial support for their first property worth an average of £19,824.
Over half of the parents of second steppers say they will raid their own savings to provide help, while around 40 per cent plan to remortgage.
Some 28 per cent of second steppers claim that they will have fewer children than originally planned due to the challenges they have faced whilst trying to make the next move. This is up by 16 per cent in a similar survey last year.
Meanwhile the same survey reveals that the gap between the sale of a second stepper’s current property and the cost of their next home – often a detached property – is now £135,985.