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Second steppers’ significant sacrifices

Second steppers’ significant sacrifices

Category: Mortgages
19/03/2018

New research reveals that those looking to move are sacrificing a lot in their struggle to be able to afford their dream home. This is hardly surprising, as the average cost of the next property after being a first-time buyer sits at £370,539.

Sacrifices abound

With such a significant cost, second steppers are likely to need to tighten their belts to make it work. And indeed, Nationwide's survey shows that 55% would forgo nights out, while 48% would sacrifice eating out and 33% would cut holidays or weekends away. A particularly goal-driven 22% of men and 7% of women would even give up a spouse or partner to move up the property ladder.

Even such a radical move may not be enough, however, as 14% say they'd have to borrow money from family to support a move, while 27% would need to change their job or career and 26% would increase working hours. Another 19% would need to make significant lifestyle changes, while the same proportion say they'd need to delay starting a family and 16% would have to put their wedding plans on hold.

The dream home beckons

These sacrifices may be necessary, as 86% of those in their first home believe it is now much harder to move to a second home than a decade ago, with top barriers including the ability to find a home that's within budget (38%) and finding a home in the right location (25%). As a result, 21% are stuck in a house that's too small for their family and 16% are in an area they don't like.

While it's hard to compromise on your dream home, 35% would be willing to forgo a conservatory, followed by 29% who could do without a garage, 22% who say they could give up a driveway and 20% who would sacrifice moving near an ideal school. Furthermore, 88% would consider buying a property in need of renovation if it was cheaper, although of course this could still be costly in other ways.

In contrast, a stubborn 21% weren't willing to forgo anything at all, with 35% holding out for their dream home. "There is a great deal of focus on the difficulties facing first-time buyers trying to get onto the property ladder but, as the research shows, second-time buyers are facing a variety of difficult challenges of their own," said Henry Jordan, Nationwide's Director of Mortgages.

What next?

Whether you want your second home to be your 'forever home' as 26% say or you're simply looking to move somewhere with more space, you'll want to try and get the most competitive mortgage you can afford. If you've already got your sights on a new home, you may want to have a look at the mortgage charts to see if there's a deal there that suits you.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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