The challenges facing those moving up the ladder.

Transcription

1 The challenges facing those moving up the ladder.

2 Key facts and findings. Second Steppers are people still living in their first home, looking to take the next step up the ladder. First Time Buyers intend to stay in their first home for an average of four years and one month. 84% of Second Steppers expect a First Time Buyer to buy their home. Property transactions are still in decline for First Time Buyer and Second Step homes. On average, there is a price difference of 48,216, or 32%, between the price of a typical first time buyer and typical second step home. The average house price paid by a first time buyer has reduced by 28,041 since the typical Second Stepper bought their first home. 43% of Second Steppers haven't increased their savings since buying their first home. Only 13% of Second Steppers say they will reduce their asking price if they can't sell. More than a quarter are willing to rent out their home instead. Lloyds launches new Equity Support Scheme. to allow homeowners with low or negative equity to move home. 2

3 Background. The key to achieving a sustainable housing market lies in homeowners moving up the housing ladder, maintaining a fluid movement throughout the market. First Time Buyers are often referred to as the life blood of the housing market kick-starting the flow of transactions, the first link in a property chain and key to getting the market moving. Second Steppers are those people still living in their first home, but looking to take their next step up the ladder. Second Steppers are the link between First Time Buyers and the rest of the housing ladder. Second Steppers were yesterday's First Time Buyers. They are today's First Time Sellers and tomorrow's Next Time Buyers. They are living in the homes that the First Time Buyers need to buy to get the market moving. Without movement from Second Steppers, movement on the ladder comes to a standstill on the second rung. This research and analysis from Lloyds TSB demonstrates the intrinsic role Second Steppers play in realising a long term sustainable housing market. The findings show how many are facing more challenges now than they did when buying their first home. For many, a necessary move to enable them to start a new family or to relocate with work is held back by an erosion of equity and a widening gap between the cost of a First Time Buyer and Second Step property. Crucially, for every Second Stepper that can't move on, there's a First Time Buyer not getting on the ladder. Colin Walsh Managing Director of Mortgages Lloyds Banking Group Colin Walsh, Managing Director of Mortgages explains why Second Steppers are so important in today's market: The challenges facing First Time Buyers receive a lot of deserved attention but if we're trying to achieve a sustainable housing market, we have to look at every rung of the housing ladder. Homeowners that have been in the market for five years or more are generally in a good equity position. However, many of those that bought their first home in more recent years, and are now looking to take the next step up, have found their equity position hit hard by the period of house price decline. It's right that we can continue to help people buy their first home, but we shouldn't underestimate the role Second Steppers have in making that happen. They're the link between first time buyers and the rest of the market and at the moment, many are finding it just as tough to make the next move as it was to make their first. We take our responsibility as the UK's largest lender very seriously and, given their role in the market, it's important for us to invest in ways to support Second Steppers as they move up the property ladder. 3

4 The second steppers market. A review of property transactions from the past year demonstrates the impact and importance of the Second Steppers market. England and Wales Property Transactions Change in transaction levels 35% 30% 25% 20% 15% 10% 5% 0% -5% -1 0% -1 5% -20% Property transactions 0k-1 20k 1 20k-200k 200k-285k 285k-500k 500k-1 0m Property price Source: Land Registry Q Q k-120k 120k-200k 200k-285k 285k-500k 500k-10m North -4% 0% 14% 24% 0% Yorkshire and Humberside -10% -8% 6% 15% 19% North West -6% -7% 8% 19% 25% East Midlands -12% -1% 10% 16% 32% West Midlands -9% -2% 4% 14% 25% East Anglia -30% -14% 8% 9% 32% Wales -13% -2% 5% 6% -5% South West -30% -15% 4% 14% 31% South East -28% -20% 1% 15% 33% Greater London -22% -25% -1% 14% 33% England and Wales -14% -13% 2% 14% 31% What would be the impact for you personally if you are unable to sell your current property in the timescales you hope to? We will not be able to move and start a family. Will have to delay moving closer to work (current commute is not satisfactory). I worry that prices will start to increase again and new property will become unaffordable. Source: Land Registry The past twelve months has seen the beginning of a slow period of recovery in the housing market, with transaction levels starting to build again. Sales activity has picked up in properties valued over 200,000 typically those that are considered to be third step of the property ladder upwards. However, the market continues to suffer with a continuing decline in transactions at not just the first step of the market, but the Second Step too. 4

5 Second steppers. Lloyds TSB has interviewed 500 Second Steppers: homeowners who are currently living in their first home, having bought the property within the past five years and looking to move within the next year. The majority of Second Steppers (80%) are aged between 25 and 34 years Almost 4 in 5 are either married or living with a partner, while the remaining are single Mean household income is approximately 51,400 On average, these homeowners have lived in their home for two years and eleven months, and bought their first home at the beginning of Why are they making the move? On purchasing the property, First Time Buyers intend to stay in the property for an average of four years and one month. Now, as that time nears and as fledgling Second Steppers, they are expecting to move into their next property within the next year. Lloyds TSB asked Second Steppers which property types they're looking at for their next home. Second Step property Property type Current property Second Step Detached 12% 48% Semi-detached 27% 60% Terraced house 27% 21% Flat 33% 8% Bungalow 1% 4% Key facts. The majority of Second Steppers (80%) are aged between 25 and 34 years. Mean household income is approximately 51,400. On average, First Time homeowners have lived in their home for two years and eleven months. First Time Buyers intend to stay in the property for an average of four years and one month. A third of second steppers currently live in a flat, with a sizeable number living in either a semi-detached or terraced house, but have very different aspirations for their second home. Just 8% are looking for a flat the second time around, with nearly half (48%) setting their sights on a detached property. A significant 60% of people expect to take their second step on the ladder into a semi-detached property. 5

6 Second steppers continued. Second Step property Number of bedrooms Current property Second Step 1 14% 1% 2 43% 15% 3 31% 55% 4 11% 24% Key facts. Over a quarter (27%) of Second Steppers want to move because they expect to start a family soon. Space is a key agenda for those moving. Indeed, 53% of those that want to move out of their First Time Buyer property say that it is simply because their current property is too small. However, over a quarter (27%) of Second Steppers want to move because they expect to start a family soon. Nearly half, (48%), of Second Steppers bought their current property because it is close to their place of work. It is, therefore, unsurprising that more than 1 in 10 want to move house because they are relocating, either with a new or existing employer. On average, homeowners expect their Second Stepper property to be around 30 miles away from their First Time Buyer home a distance that suggests why many need to move. Second Steppers expect their next home will be an average of 30 miles away from their First Time Buyer home. 1 in 10 Second Steppers are moving because they are relocating with work. Kate Jones, 27, an employee benefits consultant from Birmingham bought her flat in November 2008 My flat was the perfect first home for me lovely size for just me, a one bedroom flat in a nice area not too far from work I had saved hard for a deposit, moving home for a while after leaving university. I saved around 12% of the price of the flat, and took a two year fixed rate mortgage at 6.58%. Two years was the right term for me my plan was that as my fixed rate was coming to an end, I'd be starting to think about taking the next step up the ladder. I still think that getting a fixed rate was the right thing to do as a first time buyer, I knew exactly what my monthly outgoings were. On the downside though, whereas a lot of people have seen interest rates cut, I haven't until very recently and because of that, overpaying hasn't really been an option for me. 6

7 I had to take a bit of a punt when to buy. House prices had started to come down by the time I got on the ladder, but unfortunately they carried on dropping for a while after. It means that while I'm not in negative equity, I certainly haven't really been able to boost my equity in any way. Now I'm in a relationship, my two year time line would have worked really well for looking for somewhere a little bit bigger than the flat. The problem I'm facing now is that I don't really have the money I need to be able to buy a house especially as I would need to muster a 10% deposit. Although my mortgage payments dropped in November, my other outgoings are higher now than when I first bought as the cost of other things (utilities, fuel and food) has risen and I simply haven't been able to save the chunk of cash each month that I would have needed in order to move this year. The way things are, it's going to take me longer to save up for the kind of deposit I now need. This is a perfect flat for a first time buyer, but it looks like I'm going to be here for a little while longer than I'd planned. What would be the impact for you personally if you are unable to sell your current property in the timescales you hope to? I would be unable to buy a bigger house with my girlfriend which would be frustrating for both of us as we can afford somewhere bigger, closer to work and more suitable for both of us. 7

8 House prices & equity levels for second steppers. House prices Over a quarter, 27%, of Second Steppers rate the decline in house prices as one of their key concerns in moving house. The average house price paid by a first time buyer has reduced by 28,041 since the typical Second Stepper bought their first home: January 2008: 148,001 December 2010: 119,960 Source: Halifax House Price Index This reduction starkly demonstrates how the market has changed in the period since these homeowners purchased their first home. Having bought at the height of house prices during the period where products were widely available at 95% loan-to-value and above, Second Steppers are the segment of the market most likely to have their equity levels affected by a reduction in house prices. Aside from their possible high original equity levels, the 33% of Second Steppers that live in a flat have also seen a real impact from house price reductions which will also affect their equity position. Over the past decade, flats have risen by less in value than the rest of the market (source: Land Registry). Key facts. The average house price paid by a first time buyer has reduced by 28,041 since Second Steppers bought their first home. January 2008: 148,001 December 2010: 119,960 Source: Halifax House Price Index 8

9 Negative equity. One in twenty mortgage borrowers in the UK is estimated to be in negative equity. However, this is greater, at 9%, for those that are living in their first home and up to 13% in certain areas of the country, including the North West. Negative equity What would be the impact for you personally if you are unable to sell your current property in the timescales you hope to? Region % of Second Steppers in Negative equity North 11% Yorkshire & Humberside 8% North West 13% East Midlands 6% West Midlands 9% East Anglia 12% Wales 12% South West 3% South East 6% Greater London 10% Northern Ireland 13% Scotland 6% Second Steppers 9% UK Total 5% Source: Lloyds TSB estimates* Negative Equity is widely considered as a problem that only affects borrowers when, like Second Steppers, they want or need to be able to move home. However, it is a lack of equity and a new deposit not just negative equity that can determine whether Second Steppers are able to make the next move. Second Steppers typically need to find a deposit of at least 10% of the property price, which is hampered by their lack of equity. Live in a small two bedroom house with one toddler and another baby on the way. Need to be able to sell current home early in 2011 in order to increase size of property for family to live comfortably. Having lived in this property longer than expected, I worry that it will not sell. *Lloyds TSB estimates based on number of borrowers in negative equity. 9

10 Negative equity continued. In comparison to 12% of the UK that have insufficient equity to move, 18% of Second Steppers are in this position. In the North, nearly a third (32%) of Second Steppers have insufficient equity to be able to make their move. Insufficent equity to move Region % Second Steppers with insufficient equity for deposit (at least 10%) North 32% Yorkshire & Humberside 17% North West 32% East Midlands 17% West Midlands 19% East Anglia 25% Wales 26% South West 11% South East 27% Greater London 20% Northern Ireland 18% Scotland 13% Second Steppers 18% UK total 12% Source: Lloyds TSB estimates* What would be the impact for you personally if you are unable to sell your current property in the timescales you hope to? I am currently investigating getting a buy to let mortgage on my existing property and transferring my existing mortgage to the new property. Laura Concanon, a vet, bought her home in Essex with husband Jon in August 2007 We bought our small, two bedroom terraced house near Epping in August 2007, the peak of house prices, for 249,000. We put down a deposit of 12,500, or 5%, and took a fixed rate mortgage of around 6% on interest only, and we've recently gone onto our lender's standard variable rate. We had our first baby in April 2010 and now are feeling that we need to move as have very little space for a family. We would definitely struggle to have a second child whilst we're living here. A local estate agent recently came and valued our house at 235,000 which unfortunately means that we're now in negative equity. This means that our options for moving are extremely limited. *Lloyds TSB estimates of number of borrowers with insufficient equity based on the average homemover house price for the region and a minimum deposit of 10% 10

11 I've taken nine months off work on maternity leave, so we have had very little chance of saving any money for a deposit not to mention estate agents fees and stamp duty. I've just gone to back part time while our son attends nursery and Jon is in full time work the cost of childcare certainly won't make it any easier to get the deposit we need. The price of making the second step. The typical Second Stepper is moving from a flat to a semidetached property. Based on current house prices, homeowners would have to pay a premium of 32% to make this move. Making the second step Q Flat Semi Detached Difference % change North 111, ,248 31,983 29% Yorkshire and Humberside 123, ,633 25,688 21% North West 119, ,259 39,817 33% East Midlands 108, ,465 29,854 27% West Midlands 114, ,769 44,975 39% East Anglia 131, ,388 43,563 33% Wales 123, ,424 23,079 19% South West 163, ,402 47,345 29% South East 167, ,128 88,394 53% Greater London 345, , ,466 31% England & Wales average 150, ,166 48,216 32% Key facts. Based on current house prices, homeowners would have to pay a premium of 32% to make this move. On average, there is a price difference in England and Wales of 48,216, or 32%, between the price of a typical first time buyer and second step property. Source: Land Registry On average, there is a price difference in England and Wales of 48,216, or 32%, between the price of a typical first time buyer and second step property. This is a growing premium in comparison to 2007 when the value of the typical Second Step property was 22% higher than the FTB property. There are stark regional differences in play for homeowners making this move. In the South East, the difference in property prices for Second Steppers equates to 88,394 more than half the value of their current home again. By comparison, those making the Second Step in Wales are looking for an additional 23,

12 The price of making the second step continued. Reviewing property transaction levels in this context demonstrates the wider impact on the market. With the Second Step premium in the South East costing four times the amount in Wales, property transactions for Second Step properties are clearly suffering, and significantly stronger in Wales outperforming the national average. This demonstrates the impact the Second Step premium is having on transaction levels at the lower level of the market. Property transactions Q Q k-120k 120k-200k Wales Premium of 23,079 South East Premium of 88,394-13% -2% -28% -20% England and Wales -14% -13% Key facts. In the South East, the Second Step premium stands at 88,394. Those making the Second Step in Wales need an additional 23,079. Second Steppers estimate that they will spend 5,423 in making the move. Source: Land Registry Significant differences between the cost of a first time buyer property and a Second Step property have always existed. However, today's Second Steppers haven't been able to rely on increase in equity in their home. Therefore, the additional deposit of 48,216 (national average) between the first and second properties means that homeowners making deposits in an instant access savings account would need to save each month of the four years they live in their first property to be able to move to the second. In the South East, this monthly figure stands at In addition to the cost of the property, moving onto the Second Step is the first time that these homeowners have experienced the cost of a sale as well as the cost of a purchase. When estimating the costs they will face in making the move, Second Steppers believe that they will spend Estate agent fees: Stamp Duty: Moving Fees: Mortgage fee: Other: Total: Therefore, on average, the additional cost of the property in addition to the expected fees means that the cost of making the move from a First Time Buyer to a Second Step property stands at 53,639. The move from a First Time Buyer to a Second Step property stands at 53,639. More than half of Second Steppers, 55%, have made an overpayment on their mortgage. Second Steppers would need to save 983 a month to get the deposit for their Second Step. 12

13 Rebecca Hunt, 28, is an Associate Director trying to sell her first property in Leamington after getting a job in London I first bought my property in Leamington in early 2006, for 120,000 and I took out a mortgage for 90,000. It was a shared equity purchase, which means a housing association provided the other 30,000 and I then have to give 25% of the sale price back to them when it sells. The big concern has been getting viewings. In the five months it's been on the market, I've only had a handful... two offers have fallen through. When I moved to London just over a year ago the flat was worth less than I bought it for in 2006, so I've been renting it out for the last year. Unfortunately the rules of the housing association mean I can t do this for longer than 12 months so now I'm really need to get rid of it, otherwise I need to pay for the mortgage on an empty flat and my rent on my home in London. With this in mind, I put the property on the market about five months ago for 133,500. It does have a board up and it s advertised in local papers, the estate agent s marketing and online via Rightmove. The big concern has been getting viewings in the five months it's been on the market, I've only had a handful. In order to attract more viewings, I have reluctantly dropped the price to 129,000. I've accepted two offers on this new price, but both have fallen through after both prospective buyers have not been able to raise a large enough deposit. I am also planning to buy in London eventually although the sale of the flat in Leamington won t get me very far in London so I expect when I do get the sale, it ll sit in the bank for rather a long time! 13

14 How are second steppers paying for the move? Nearly a third (31%) of Second Steppers admit that the lack of any deposit for their Second Step property is the main problem they face in moving up the ladder. A further 67% acknowledge that they need a greater deposit than they currently have saved. The significant majority of Second Steppers (72%) have seen an increase in their salary since they bought their first home, with an average of a 19% increase. However, given that only 15% of Second Steppers say that this increase is a key factor in their move, how are they planning on obtaining the 53,639 it will cost them to take the Second Step? For many, their plans are in contrast to the market conditions. 70% are relying on equity in their current property Today's Second Steppers are not able to rely on house prices to boost their equity levels in the way their predecessors have in times of sustained house price increases. However, Second Steppers have been able to take advantage of low interest rates like no other borrowers have before by overpaying on their mortgage. More than half of Second Steppers (55%) have made an overpayment on their mortgage in the last twelve months boosting the equity levels in their current property. 57% are looking to their personal savings Despite benefiting from low interest rates on their mortgage, only 33% of Second Steppers state that they've actively increased their monthly savings in the last 12 months. Whilst a further 23% claim to save when they can 43% admit to not increasing their monthly savings. What would be the impact for you personally if you are unable to sell your current property in the timescales you hope to? I would be unable to buy a bigger house with my girlfriend which would be frustrating for both of us as we can afford somewhere bigger, closer to work and more suitable for both of us. 17% are looking for financial support from family member/friend Half of the homeowners questioned got support with the deposit on their first property (parents helped 83% of these homeowners), and 17% get help with making the monthly payments. On average, to buy their property as First Time Buyers, these homeowners received on average around 20,633 from their parents, whereas those that sought support from grandparents got an average of 28,953 towards their deposit. However, second time round, just 17% are relying on support from their family to achieve the deposit that they want to. Finally, 6% are reliant on a windfall or inheritance to help them make the next move. 14

15 Second steppers' mortgages. Whilst many odds have been stacked against Second Steppers since their first house purchase, those on products linked to the Bank of England base rate have benefited from reductions to their monthly repayments. Official Bank Rate: January 2008: 5.5% January 2011: 0.5% Source: Bank of England These borrowers have had very little incentive to move from their initial First Time Buyer product. Two thirds (67%) of Second Steppers are still on their first mortgage, and sourcing a new mortgage for their new home will be their first remortgage experience. Since buying their first home, one in five (21%) borrowers have moved lenders and 12% have secured a new deal with their existing lender. However, Second Steppers will also have seen a change in mortgage criteria from their first house purchase. Of those interviewed, 23% borrowed more than 90% of the value of their first property. By comparison, 90% is typically the maximum LTV available on mortgage products in today's market, although there has been a significant reduction in the number of deals on offer: Number of residential mortgage products available at 90% LTV January 2008: 897 products January 2011: 199 products Key facts. Bank of England Base Rate: January 2008: 5.5% January 2011: 0.5% Number of residential mortgage products available at 90% LTV January 2008: 897 products January 2011: 199 products Source: moneyfacts.co.uk Over a quarter (28%) of Second Steppers state that the lack of first time buyers is responsible for the delay in their move. Source: moneyfacts.co.uk 15

16 Selling the first home. Those putting their first home on the market are entering one of the most subdued housing markets in recent history. 60% of Second Steppers have had their property on the market for less than six months. Nearly a quarter (23%), have had their property on the market between 6 and 12 months. However, nearly one in twenty of Second Steppers (4%) have had their current property on the market for over two years. This is representative of the levels of success that Second Steppers are having in their house sale. One in five (19%) haven't had any viewings of their property whilst it has been on the market. Although 33% have had more than five viewings, in the average seven months that a Second Stepper has been trying to sell their first property they've had just four people to view their property. Over half (56%) of Second Steppers have not received any offers on their home, and a further 25% have had just one. This means that 18% of Second Steppers have turned down more than one offer for their property, with 2% claiming to have turned down more than five. Who's buying from the Second Steppers? Second Steppers expect one of three key audiences to buy their property: First Time Buyer 84% Buy to Let Landlord 44% Downsizer 22% Over a quarter (28%) of Second Steppers state that the lack of first time buyers is responsible for the delay in their property. The most common hurdle faced by First Time Buyers is the level of deposit needed. However, our research of Second Steppers demonstrates that equity levels have been reduced to such a level, that only 13% are willing to reduce their asking price to generate interest. Prices are therefore unlikely to reduce to a level that First Time Buyers can more easily afford whilst Second Steppers are in their current equity position. Key facts. 60% of Second Steppers have had their property on the market for less than six months. Nearly a quarter (23%), have had their property on the market between 6 and 12 months. One in five (19%) haven't had any viewings of their property. 18% of Second Steppers have turned down more than one offer to buy their home. Only 13% are planning on reducing their asking price if they can't sell at the current price. 16

17 What will happen if second steppers can't sell? Property transaction levels have already demonstrated the impact that the lack of transactions is having on the market. 14% of Second Steppers have already tried to market their first home and removed it from the market because they have been unsuccessful suggesting that more Second Steppers currently marketing their property would like to sell it. However, the intentions of Second Steppers demonstrate that a number of these First Time Buyer properties could end up in the Private Rented Sector. Whilst 44% of Second Steppers expect to sell to a Buy to Let landlord, 40% are willing to become a landlord themselves, and rent out their first time property if they're unable to sell it. A further 15% would do this if they were able. A significantly greater number of Second Steppers (27%) would rather rent out their First Time Buyer property than drop the price in order to attract interest (13%). This reluctance to reduce the price will directly affect the number of First Time Buyers able to buy the property. Of those potential landlords, 25% would make their planned move, but 12% would then themselves move into the rented sector rather than buy their Second Step home. It is therefore possible that in order to move to the property they want, many homeowners expect to move themselves, or sell their property, to the private rented sector. Second Steppers are also unwilling to compromise, with just 6% willing to consider moving to a less expensive property. However, the majority (67%) are planning on staying put and look to sell their home at some point in the future, and 38% would keep the property on the market at the current price until they got any interest. Key facts. 14% of Second Steppers have already tried to market their first home and removed it from the market. 44% of Second Steppers expect to sell to a Buy to Let landlord, 40% are willing to become a landlord themselves. A significantly greater number of Second Steppers (27%) would rather rent out their First Time Buyer property than drop the price in order to attract interest (13%). 17

18 Product solutions. Lend a Hand Homemover A quarter of Second Steppers claim that one of their biggest problems in moving is the availability of mortgage products at higher LTVs. Combined with a decline in house prices, this is a key challenge in buying their second step home. As they look to bridge the gap between their first and second property, 17% of Second Steppers are relying on the support of their family or friends. The Lloyds TSB Lend a Hand 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. Acknowledging that the challenges of securing a larger deposit no longer apply exclusively to First Time Buyers, Lloyds TSB also made this product available to home movers in No other major lender offers deals for new customers moving house unless they have a deposit of at least 10%. Equity Support Scheme Second Stepper research has demonstrated that the low, or negative, levels of equity in their property are holding them back from being able to make the move. In some cases, the desire to move isn't driven by desire to buy a larger home, but by necessity to move to a new area. Research demonstrates that 39% want to move to a new area - 30 miles away on average. The new Lloyds Equity Support Scheme now makes home moving possible for customers with low or negative levels of equity. The scheme allows borrowers to move to a property of the same value, but also downsize or buy a larger property where possible. This scheme allows existing customers to move home without any increase in risk to the lender: What would be the impact for you personally if you are unable to sell your current property in the timescales you hope to? Have to share our one room with our baby for much longer than intended. Possibly have to sleep in our front room to give baby a room. I am hoping to move closer to my partner. If I am unable to sell satisfactorily I will have to rent out my property and we will have to rent together in London. Like for like property Current mortgage: 150,000 Current property worth: 140,000 Current LTV: 107% Customers in this situation would be able to move to a new home, also worth 140,000, with their existing product rate as the LTV would be maintained at 107%. This is likely to be a solution for people looking to move location rather than get more space. 18

19 Product solutions continued. Trading up Current mortgage 130,000 Current property worth 110,000 Current LTV 118 % New property worth 120,000 New mortgage 130,000 Additional customer deposit 10,000 New LTV: 108 % Customers looking to move to a bigger property will no longer be prevented from moving because they're in negative equity. Borrowers will still be required to make an additional deposit rather than increasing their existing borrowing. However, the scheme will allow them to direct their savings towards the new property rather than plug the negative equity gap. This will then move the borrower and the lender into a stronger equity position, as the LTV level will reduce as a result of moving to a more expensive property. This product will allow Second Steppers with a mortgage from Lloyds Banking Group to move to a bigger property, getting the market moving again. What would be the impact for you personally if you are unable to sell your current property in the timescales you hope to? I am currently investigating getting a buy to let mortgage on my existing property and transferring my existing mortgage to the new property. I'd have to rent it out - could be difficult. Except where a separate source is stated, all figures are from Second Steppers consumer research. The Second Steppers consumer research was undertaken by BDRC Continental (bdrc-continental.com) on behalf of Lloyds Banking Group. Fieldwork took place between 18th and 31st December interviews were collected from a representative online consumer panel (Valued Opinions). Further methodological detail is available on request. 19

20