Stuck in your first home and can’t sell up to get a bigger place? Here’s how you can get moving, progress up the ladder and beat the market!
For years the plight of the first time buyer struggling to get on to the property ladder has made headlines but the stagnant market has now highlighted a new group unable to live in the home of their choice.
Research suggests those who already own their first home – the so called ‘middle movers’ – are stick, unable to move on to their second home.
A lack of first time buyers able to get mortgages, combined with falling property prices – and the dreaded negative equity that can bring – are making it very hard for growing families to move on when they need more space.
The study, by mortgage lender Santander, claims two million BRITS are stuck on the first rung of the property ladder with little hope of moving in the next two years.
Almost half the 2,000 home owners questioned aged 18-34 who would like to buy a new home think it is ‘unrealistic’ that they will be able to move within the next 24 months.
The research found that just over a quarter need the value of their current home to increase before they can consider buying a new one because they do not have enough equity.
Many frustrated middle-movers also said getting a mortgage for the amount they need to borrow for the next step up is a struggle. A third are saving to add to any equity they currently have.
Add to that the general economic worries and it’s no wonder people are staying put – many for much longer than the five years they expected to stay in first homes.
Phil Cliff of Santander Mortgages said
There are a lot of frustrated middle-movers who made compromises on their first homes and have been stuck with these for longer than they wanted, as they are finding it difficult to move up the property ladder.
The good news is that if you find yourself in this position, you don’t have to play the waiting game, because there are alternatives.
We talked to three families stuck in the middle, who each found a solution to move on….
I sold my house to a company
Julie and Stephen Allan had had their three-bedroom bungalow on the market for three years before they decided to sell it to a house-buying company.
At the height of the market their home in Sunderland had been on the market for £160,000 and was then dropped to £149,950 – but still no sale. Eventually they accepted an offer from Quick Move Now for £113,000. Julie decided it was the only option and they didn’t want to lose the five-bedroom house they wanted to buy.
Using a house-buying company is a way of guaranteeing your sale and moving on. Luckily we managed to negotiate something off the price of our new property, so we didn’t lose out too much!