Clydesdale and Yorkshire Banks have launched a new mortgage aimed at helping buyers struggling to take the next step on the property ladder.
The Home Mover Mortgage allows borrowing between 90% and 95% LTV and comes with a three-year fixed rate of 4.49%. It comes with no arrangement fee and one free standard valuation.
Steve Fletcher, director of retail banking, said: “The step between the first and second property remains a challenge for some and increasing moving costs are also adding to the difficulty of raising a sufficient deposit to afford a larger home.
“Our new 95% LTV mortgage is designed to support those who can afford larger mortgage payments but are struggling to save the required deposit.”
New research from the banks highlights the growing problems faced by those struggling to move on from their first property, despite rising wages, stamp duty reforms and continued low mortgage interest rates.
The study revealed that 37% of first-time buyers are staying in their first property for longer than planned. Unsurprisingly, this is most acute in London, where almost half (49%) of those questioned had not bought a second property as quickly they had originally planned.
In stark contrast, in the East of England only 23% of first-time homeowners had stayed in their property longer than they had expected.
The research revealed that first-time buyers planned to stay in their first home for an average of seven years and nine months, with a quarter planning to stay for more than 10 years.
Those in the North East planned to stay in their first property for the longest length of time – almost 11 years – while first-time buyers in London were looking to move on after six years and three months.
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