How to make your next move
The news is often filled with reports of the difficulties first time buyers face when trying to buy their own home. However, we think that the difficulties faced by those who already own their own homes and are looking to move to somewhere larger or to a property more suited to their needs, can be overlooked. Recent research, as reported in the ‘Financial Reporter’, shows that a quarter of people hoping to take the next step up the property ladder believe that this is harder than getting on it in the first place1.
Whilst it makes sense to support first time buyers, we thought we’d put together a brief summary of our support for those wishing to move on from their existing property.
Difficulties for second steppers
The research in the Financial Reporter1 identified a group of people considering the move to their next property, and looked at how they approached this. They coined the term ‘second steppers’ to describe them and found families and couples having to change their lifestyles to plan for their next move.
For example, some people are delaying the decision to have children, or having fewer of them, because of the cost of housing1. Others are staying in their first property for longer than they had planned and setting up a savings plan and budget, which enables them to be specific and disciplined about when they can move1. If there is limited equity in your property and you move from a two bedroom house to a three bedroom house, there’s bound to be a significant change in your mortgage payments.
Adding to the complexity is the change in employment trends. More people are working on a contract basis and setting up small businesses of their own3. This can make it difficult to find lenders willing to provide a mortgage.
With all this in mind we are constantly looking for ways to help people on their way up the property ladder, and believe our personal approach to underwriting and product range can deal with the most complex circumstances.
We have already written about how some parents help their children with a deposit when they buy their first home. However, this modern trend isn’t exclusive to first time buyers as research shows that almost a third of those moving on from their first property rely on financial help from family and friends2.
Raising a deposit for the mortgage on your home can be difficult, but a ‘Gifted Deposit’ from your family is an effective way to raise the money you need, if you have someone generous enough to help. The good news is that we can accept this form of help on many of our mortgages, and have produced a useful article which explains Gifted Deposits if you want to know more.
Alternatively, if you are saving for a deposit and need a safe home for your money, then we can offer you a free savings review in our branches. Our staff can take a fresh look at your savings accounts and help you towards achieving your savings targets.
How Saffron can help
Although Saffron provides a wide range of mortgages, our products are designed for people with very specific requirements. For example, if you own a house and raising the money for your next home is taking a long time, we have a range of products which require a smaller deposit.
We also offer discount mortgages which give you a set discount off our standard variable rate for an agreed period, meaning lower initial monthly payments as you settle into your new home. There’s also no arrangement fee to help keep the costs of a move down.
We take the time to get to know you, your circumstances and your needs, which means we’re able to help individuals with complex income structures such as contractors and the self-employed. We can review your unique position and discuss it with you before reaching a conclusion.
Our expert mortgage advisers are available to you throughout the entire application process. Unlike many lenders, with Saffron Building Society you have one point of contact throughout the entire process, and you won’t find yourself constantly talking to people in a call centre or speaking to someone who is unfamiliar with your details. Furthermore, a person, not a computer, makes the final decision.
If you want to speak to someone for more details then please call us on 0800 072 1100.
- Financial Reporter, August 2017
- Financial Reporter, August 2017
- Support for people who are self employed or contracting, March 2017