Homeowners struggle to upscale
This figure falls to three in 10 (28%) for 18 to 24 year olds but rises to two in five (41%) for 35 to 54 year olds.
Kevin Mountford, head of banking at MoneySuperMarket, said: “There was a time when those in the 35 to 54 age group would have been looking to downsize, but now this is the age group where people are starting a family in some cases or still housing grown up children who are struggling to find their own way.
“Although they might have the earning potential to make that next step there is the constraint of mortgage term that comes with their age. Lenders will tend to fix the term of repayment to retirement age, so for those movers aged over 34 the repayments on increased value mortgages will be much higher as they’re paying it back over a shorter time.
“For example a £250,000 mortgage on the leading 2-year fixed at 1.05% could be taken out by a 30-year-old with a 30-year term and the monthly repayments would be £810.
“However for someone aged 45, the same mortgage over a 20-year term would have monthly repayments of £1,155, that’s £345 extra to find each month to make that next move.”
Mortgage holders current think they need to save £10,500 before moving; however Londoners need said they need closer to £13,000 while people in the North East think they need just £6,800.
Mountford added: “Getting a foot on the property ladder in the first place can be hard work, but for many homeowners it’s just as difficult to take the next step.
“House prices have rocketed in recent years and tougher borrowing rules have made the search for a mortgage slightly harder.
“It is vital for a healthy housing market that people are able to move up the property ladder otherwise the whole system can come to a grinding halt, leading to a shortage of property.”