The Home Mover Mortgage allows borrowing between 90% and 95% LTV. It comes with a three year fixed rate of 4.49% and is available for buyers struggling to take the next step on the property ladder.
The mortgage launches as new research from the Banks highlights the problems faced by those struggling to move on from their first property, despite improvements in ‘real’ wage growth, stamp duty reforms and continued low mortgage interest rates.
The findings reveal that 37% of first time buyers are staying in their first property for longer than planned and this is most acute in London where almost half (49%) of those surveyed had not bought a second property within the timescales they had initially intended. This is in contrast to the East of England where only 23% of first time homeowners had stayed in their property longer than they had expected.
The research revealed that first time buyers plan to stay in their first home for an average of seven years and nine months although a quarter plan to stay for more than 10 years.
Interestingly those in the North East plan to stay in their first property for the longest length of time – almost 11 years - whilst first time buyers in London have hopes of moving up the property ladder after six years and three months.
Steve Fletcher, Director, 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.”
