SECOND steppers say rising prices have had a positive impact on their ability to move up the housing ladder and with Help to Buy available they could find that their money goes further.
While a report from Lloyds Bank* says most second steppers are no longer trapped in negative equity, many still see raising a deposit as a barrier to moving. They still typically need to find an extra £128,390 to fund their move to a larger detached property.
However, for anyone purchasing a new home with Help to Buy they should only need a relatively small deposit of around 5%.
Second steppers are an important link between first-time buyers and the rest of the housing ladder. If first-time sellers get stuck, then it’s difficult for the rest of market to keep moving too as starter homes aren’t freed up for younger buyers.
Our customers Rachel and Martin Revill are a fantastic example of buyers who have been able to benefit from the Help to Buy equity loan scheme and buy a newly built property in Liverpool.
In fact, by using the scheme, they were able to jump up a couple of rungs on the property ladder and find their perfect home for life in Allerton.
The couple, both 34 and previous home owners, had been looking at older homes but fell in love with the showhome at our Calderstones Grange development and all of its traditional exterior features. Finding out about Help to Buy and how it can increase their purchase power was a real boon too.
Rachel said: “We had always been keen on older properties because of their character but when we saw the homes in Redrow’s Heritage Collection, we realised we could actually get all of those features in a new property too. With a new build we also had the bonus of modern features inside and barely any work to do when we moved in.
“We weren’t sure if we’d be able to afford such a large home this soon but when we spoke to the independent financial advisor we found out we could use the Help to Buy scheme and it was possible to purchase a lifetime home much quicker than we thought.”
Rachel and Martin are just one of the many couples and young families who have reaped the rewards of the scheme and got where they want to be faster.
With the Lloyds report concluding that the size of the deposit required (47%) for second steppers and perceived tighter mortgage lending criteria (40%) are still seen as the biggest barriers to moving home, then Help to Buy can definitely help to get the market moving.