Second steppers join queue for Bank of Mum & Dad as more struggle to move up the property ladder

It’s not just first-time buyers turning to the Bank of Mum & Dad to get on the property ladder.

Second steppers are the latest customers and require on average £25,000 to help fund their next move.

Research by Lloyds Bank found that an increasing number of second steppers have to borrow from family and friends to trade up the property ladder, rising from 27% in 2017 to 33% in this year’s poll.

More than half of second steppers (58%) said they wouldn’t be able to make their next move without this support.

The analysis found that 62% of second steppers would remortgage to get the extra cash and 39% would use savings.

However, 22% will need help from their parents and 13% would seek financial support from grandparents, while another 6% would look to friends.

This is also having an impact on the Bank of Mum & Dad, with half of parents having to raid their own savings or even downsize in order to release funds.

Second steppers are also making their own sacrifices. Almost three in ten said that they will have fewer children than originally planned due to the challenges they have faced whilst trying to make the next move, up by 16% from last year. More second steppers are also delaying having children due to the difficulties faced.

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

“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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