Clydesdale and Yorkshire Banks have launched a 90% to 95% loan-to-value mortgage with a 3-year fixed rate of 4.49% for buyers struggling to take the next step on the property ladder.
The launch follows research from the banks suggesting that 37% of first-time buyers are staying in their first property for longer than planned.
The phenomenon is most acute in London where 49% 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% of first-time homeowners had stayed in their property longer than they had expected.
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, director of retail banking at the banks, 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.”
The Clydesdale and Yorkshire Banks home mover mortgage comes with no arrangement fee and one free standard valuation.