Lloyds TSB Releases Annual 'Second Stepper' Report
/EINPresswire.com/ Lloyds TSB has today launched its annual 'Second Stepper' report which tracks the ongoing plight of first time sellers amid a challenging housing market. The report reveals that home affordability for Second Steppers has become much less favourable and house prices have led to equity shortfalls for many.
Second Steppers are homeowners looking to sell their first home and move up the ladder. Many potential Second Steppers in today's market would have bought close to the peak of the market and are now finding it increasingly difficult to get off the 'first rung'.
According to Lloyds TSB's report, almost two thirds (61 percent) of Second Steppers have wanted to climb up the ladder in the past 12 months but have been unable to do so as they face an increasing number of challenges. More than one in five (22 percent) believe it is now harder to move up the ladder than get on it in the first place, with almost half (43 percent) also feeling it will be as equally difficult.
The report also revealed general pessimism about the future of the housing market; a third (34 percent) believe it is going to be harder to sell their property this year than last, with over half (53 percent) predicting that the housing market will not improve this year.
A lack of affordable property to buy (35 percent) and a lack of offers from potential first-time buyers (32 percent), were cited as key barriers delaying the sale of people's current property on top of a whole host of other challenges.
Home affordability for second steppers (5.2) is also now less favourable than for first time buyers (4.1).
Stephen Noakes, Mortgage Director, Lloyds TSB explains: "First time sellers are now faced with some very tough challenges when trying to make their next move on the property ladder and many are finding it more difficult than getting on the ladder in the first place. It is vital that this group of home movers receive more support and attention as they play an intrinsic role in getting the housing market moving again."
"To achieve a sustainable housing market we need to see movement throughout the market. If Second Steppers get stuck on the first rung, movement at the bottom half of the ladder comes to a standstill, and this bottleneck will not only restrict the supply of starter properties but will have a knock on effect across the whole of the housing market."
More help is required to support this important segment of the housing market. Almost three quarters (72 percent) of respondents are calling on the Government to take action to help those trying to sell their first home and almost half of respondents (49 percent) would like to see their mortgage provider offer new products to help them overcome some of these challenges.
But, many first time sellers have being taking action to help improve their situation. Almost two thirds (58 percent) have been saving to help fund their next move and over one in four (27 percent) have also been overpaying on their mortgage to help build up their equity.
Addressing the challenges faced by those looking to move home, but suffering from either a reduction in equity or difficulty raising the deposit, Lloyds TSB offers the Equity Support Scheme and Lend a Hand Homemover.
The Equity Support Scheme makes moving home possible for Lloyds TSB customers with low or negative equity, it is designed to maintain momentum in the market. It allows borrowers to move to a property of the same value, buy a bigger home or downsize.
Customers can move without increasing their existing levels of borrowing and channel any additional funds in to their new home.
The Lloyds TSB Lend a Hand Homemover product allows borrowers to take out a mortgage with a deposit of just 5%, but can access a rate that is the equivalent of products available for borrowers with a much larger deposit. This is because their funds are backed up with the savings of a helper, such as a parent, grandparent or other family member. At the same time, their helper benefits from a competitive savings rate as a legal charge is taken over the savings to offset the risk. No other major offers deals for new customers moving house unless they have a deposit of at least 10%.
Lloyds TSB 'Second Steppers panel' - last year's Second Steppers offer advice to 2012 home movers:
• Build up your savings as much as you can - you may need a higher deposit than you think and may need to take into account a fall in your equity position
• Be flexible, you will need to be prepared to lower your offer, or even look into renting your property rather than selling it
• Present your house to its best: declutter and redecorate - fix any problem areas prior to viewing
• Explore alternative ways to sell your property, such as private buyers or auction. This could save you money but will also open up your options
• Keep at it and be patient, it may take a while for you to sell your house, but there will be a buyer out there
Lloyds TSB Bank Plc is a retail bank in the United Kingdom. It was established in 1995 by the merger of Lloyds Bank, established in Birmingham, England in 1765 and traditionally considered one of the Big Four clearing banks, with the TSB Group which traces its origins to 1810.[1] Lloyds TSB has an extensive network of branches and ATMs across England and Wales and offers 24-hour telephone and online banking services. Today it has 16 million personal customers and small business accounts.[2] In Scotland, the bank operates as Lloyds TSB Scotland Plc.
Media Contact:
Claire Barratt
Lloyds TSB
020 7661 4668
http://www.lloydstsb.com/
PR courtesy of Online PR Media.
Second Steppers are homeowners looking to sell their first home and move up the ladder. Many potential Second Steppers in today's market would have bought close to the peak of the market and are now finding it increasingly difficult to get off the 'first rung'.
According to Lloyds TSB's report, almost two thirds (61 percent) of Second Steppers have wanted to climb up the ladder in the past 12 months but have been unable to do so as they face an increasing number of challenges. More than one in five (22 percent) believe it is now harder to move up the ladder than get on it in the first place, with almost half (43 percent) also feeling it will be as equally difficult.
The report also revealed general pessimism about the future of the housing market; a third (34 percent) believe it is going to be harder to sell their property this year than last, with over half (53 percent) predicting that the housing market will not improve this year.
A lack of affordable property to buy (35 percent) and a lack of offers from potential first-time buyers (32 percent), were cited as key barriers delaying the sale of people's current property on top of a whole host of other challenges.
Home affordability for second steppers (5.2) is also now less favourable than for first time buyers (4.1).
Stephen Noakes, Mortgage Director, Lloyds TSB explains: "First time sellers are now faced with some very tough challenges when trying to make their next move on the property ladder and many are finding it more difficult than getting on the ladder in the first place. It is vital that this group of home movers receive more support and attention as they play an intrinsic role in getting the housing market moving again."
"To achieve a sustainable housing market we need to see movement throughout the market. If Second Steppers get stuck on the first rung, movement at the bottom half of the ladder comes to a standstill, and this bottleneck will not only restrict the supply of starter properties but will have a knock on effect across the whole of the housing market."
More help is required to support this important segment of the housing market. Almost three quarters (72 percent) of respondents are calling on the Government to take action to help those trying to sell their first home and almost half of respondents (49 percent) would like to see their mortgage provider offer new products to help them overcome some of these challenges.
But, many first time sellers have being taking action to help improve their situation. Almost two thirds (58 percent) have been saving to help fund their next move and over one in four (27 percent) have also been overpaying on their mortgage to help build up their equity.
Addressing the challenges faced by those looking to move home, but suffering from either a reduction in equity or difficulty raising the deposit, Lloyds TSB offers the Equity Support Scheme and Lend a Hand Homemover.
The Equity Support Scheme makes moving home possible for Lloyds TSB customers with low or negative equity, it is designed to maintain momentum in the market. It allows borrowers to move to a property of the same value, buy a bigger home or downsize.
Customers can move without increasing their existing levels of borrowing and channel any additional funds in to their new home.
The Lloyds TSB Lend a Hand Homemover product allows borrowers to take out a mortgage with a deposit of just 5%, but can access a rate that is the equivalent of products available for borrowers with a much larger deposit. This is because their funds are backed up with the savings of a helper, such as a parent, grandparent or other family member. At the same time, their helper benefits from a competitive savings rate as a legal charge is taken over the savings to offset the risk. No other major offers deals for new customers moving house unless they have a deposit of at least 10%.
Lloyds TSB 'Second Steppers panel' - last year's Second Steppers offer advice to 2012 home movers:
• Build up your savings as much as you can - you may need a higher deposit than you think and may need to take into account a fall in your equity position
• Be flexible, you will need to be prepared to lower your offer, or even look into renting your property rather than selling it
• Present your house to its best: declutter and redecorate - fix any problem areas prior to viewing
• Explore alternative ways to sell your property, such as private buyers or auction. This could save you money but will also open up your options
• Keep at it and be patient, it may take a while for you to sell your house, but there will be a buyer out there
Lloyds TSB Bank Plc is a retail bank in the United Kingdom. It was established in 1995 by the merger of Lloyds Bank, established in Birmingham, England in 1765 and traditionally considered one of the Big Four clearing banks, with the TSB Group which traces its origins to 1810.[1] Lloyds TSB has an extensive network of branches and ATMs across England and Wales and offers 24-hour telephone and online banking services. Today it has 16 million personal customers and small business accounts.[2] In Scotland, the bank operates as Lloyds TSB Scotland Plc.
Media Contact:
Claire Barratt
Lloyds TSB
020 7661 4668
http://www.lloydstsb.com/
PR courtesy of Online PR Media.