Clydesdale launches new mortgage for homeowners struggling to reach next rung

The Home Mover Mortgage allows borrowing between 90 per cent and 95 per cent LTV.

It comes with a three year fixed rate of 4.49 per cent and is available for buyers struggling to take the next step on the property ladder.

The mortgage launches as new research from the Banks highlights the problems faced by those struggling to move on from their first property, despite improvements in ‘real’ wage growth, stamp duty reforms and continued low mortgage interest rates.

The findings reveal that 37 per cent of first time buyers are staying in their first property for longer than planned and this is most acute in London where almost half (49 per cent) of those surveyed had not bought a second property within the timescales they had initially intended. This is in contrast to the East of England where only 23 per cent of first time homeowners had stayed in their property longer than they had expected.

Regional Breakdown of First Time Buyers and if they have stayed longer than expected in first property:

Region

Longer than Expected

Same as Expected

Less Time Than Expected

London

49%

44%

7%

North West

47%

53%

0%

South West

43%

49%

8%

Wales

41%

55%

4%

UK average

37%

58%

5%

South East

36%

58%

6%

Yorkshire

36%

62%

2%

Scotland

33%

62%

5%

Midlands

32%

62%

6%

North West

32%

62%

6%

East

23%

75%

2%

The research revealed that first time buyers plan to stay in their first home for an average of seven years and nine months although a quarter plan to stay for more than 10 years.

Interestingly those in the North East plan to stay in their first property for the longest length of time – almost 11 years - whilst first time buyers in London have hopes of moving up the property ladder after six years and three months.

Steve Fletcher, Clydesdale’s director of retail banking, said: “The step between the first and second property remains a challenge for some and increasing moving costs are also adding to the difficulty of raising a sufficient deposit to afford a larger home.

“Our new 95 per cent LTV mortgage is designed to support those who can afford larger mortgage payments but are struggling to save the required deposit.”

The Clydesdale and Yorkshire Banks Home Mover Mortgage comes with no arrangement fee and one free standard valuation.