SECOND steppers are relying heavily on the so-called Bank of Mum and Dad to move up the property ladder.
Research from Lloyds Bank shows that almost a third of second steppers think they will rely on financial help from their parents for the next move.
Of those that do plan to ask for help from the Bank of Mum and Dad, 47 per cent said they believe their parents would have to make sacrifices to help them move up the property ladder.
Indeed those looking to ask for help from their parents will be typically looking to borrow more than £20,000.
Andy Mason, mortgage director at Lloyds Bank, said: “Parental support continues to play a vital role in helping young people to get on the property ladder. However, it is clear that despite improved conditions for this part of the housing market, second steppers will still rely on the Bank of Mum and Dad, with hard pressed parents being once again called on for financial help. Without this extra financial support, second steppers believe that they wouldn’t be able to make the next move on the property ladder for some time.”
Of the first time sellers surveyed by Lloyds Bank 23 per cent said they planned to delay starting a family until they had sold their first home. One in four second steppers surveyed said they think it’s now harder to move up the property ladder than it is to get on it in the first place. As a result 41 per cent have been overpaying their mortgage to increase their equity and 34 per cent have increased the amount they save every month.
Mr Mason said: “It is encouraging to see many second steppers planning ahead by over paying their mortgage and making bigger contributions into savings accounts to prepare for when the perfect home becomes available.”
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