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‘Second-steppers need family help to move up the property ladder’ - Lloyds

It's not just first-time buyers relying on financial help to purchase a property. According to new research from Lloyds Bank, second-steppers - those buying their second property - are increasingly requiring financial help from loved ones in order to take their next step on the property ladder.

Around a third of second-steppers say they are having to borrow money from family or friends in order to be able to trade up the property ladder - up from 27% last year.

The average amount second-steppers expect to borrow has also increased by more than £4,200 to £25,540, while 58% said they wouldn't be able to make their next move up the ladder without help from loved ones.


Using equity from their current property and personal savings are the main ways buyers raise funds to purchase a new home. However, according to Lloyds, they are increasingly needing help from their parents, grandparents and friends to make their purchasing aspirations a reality.

Some 40% of second-steppers surveyed did indicate, however, that they felt market conditions have improved since last year. Over 65% are making regular contributions to their savings and 47% are overpaying their mortgage to help increase equity.

The gap between the sale of a second-steppers’ existing property and the cost of their perfect home – usually a detached property – is now £135,985. However, the average equity level of £85,877 can help reduce this gap by 63%, meaning that second-steppers need to add an extra £50,108 to their current mortgage.

“Support from generous family and friends remains vital in helping second-steppers in taking the next step on the property ladder, despite more buyers now feeling optimistic about the housing market," says Andrew Mason, mortgage products director at Lloyds Bank.

“We continue to see parents make big sacrifices as their children return for help with housing for a second time. However, to ease the burden on parents, we are seeing more second-steppers plan ahead for their next big move by saving and paying more to their mortgage.”


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