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Story for The Times: Wannabe second steppers who got stuck?

Journalist: George Nixon, The Times and The Sunday Times

ended 29. January 2024

Good morning,

I'm looking into a potential piece about “wannabe second steppers” who are now stuck on the first step of the property ladder and can't borrow the extra amount they need to upsize because of much higher mortgage rates. Basically, first-timers who borrowed loans when rates were cheap and now can't afford the extra needed. 

I wondered if anyone on here had any clients, or knew anyone else, who've experienced this over the last year or so who'd be happy to speak to a journalist, please?

Thanks for your time, all the best,

George

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2 responses from the Newspage community

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Editor
Ben Perks
Managing Director at Orchard Financial Advisers
Inflated property prices over the last few years have forced First Time Buyers to stretch their budgets to purchase their starter homes.
As a result we have seen several clients that have been unable to make the jump to a larger property when they want to.
This could be attributed to a change in their circumstances, further increases to property value or the higher mortgage rates which have lead to tightened affordability (and stress tests) with lenders.
It's certainly caused many to rethink their plans.
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Gary Bush
Financial Adviser at MortgageShop.com
It's clear that homeowners in the last 18 months have had far fewer options available to them to allow further progression to larger more suitable properties for their family unit needs. Affordability calculations from lenders have shrunk the size of mortgage agreements down to a painful level, in a kind of narrow-minded view from UK lenders - as if the rate crisis will continue forever, stifling people's dreams. We have seen a growing trend of consumers in fact downsizing, when they don't really want to, to clear their existing debts in the hope that they can take a step forward in years to come and get back on target for their needs. We have seen several applicants selling up and going into shared ownership properties to assist their needs in size of property that they can purchase - the affordability calculations being more friendlier than lenders for the rented portion of these homes, with the aim again of purchasing further shares and taking it out of shared ownership in time.