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Clydesdale and Yorkshire Banks launch ‘next step’ mortgage

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
19/01/2016

Homeowners struggling to reach the next rung of the property ladder are targeted with a deal that only requires 5% equity in your current property

Clydesdale and Yorkshire Banks have launched a new mortgage to support second steppers, who are finding it hard to make the next move up to a larger home.

The new Home Mover Mortgage will enable borrowing between 90% and 95% of the property’s value, so those without much equity in their current property can make the next step up.

The deal is fixed for three years at 4.49%  and comes with no arrangement fee.

Stuck in first home

The deal has been launched in response to research from the banks, which highlights the problems faced by those struggling to move on from their first property.

More than a third (37%) of first-time buyers are having to stay in their first property for longer than planned, as they can’t afford to move. This is most acute in London where almost half (49%) of those surveyed had not bought a second property within the timescales they had initially intended.

Steve Fletcher, 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% LTV mortgage is designed to support those who can afford larger mortgage payments but are struggling to save the required deposit.”