According to Lloyds TSB, one in six (16%) so-called ‘second steppers’ – people moving up the ladder from their first home – are contemplating turning to their parents to plug the gap between the value of their first home and the cost of their second property.
The bank found that the majority of these people were hoping to use savings (59%) or equity in their current property (77%) to fund the move to their second property. However, almost one in five (18%) are also considering going back to their family – such as parents and grand-parents – to ask for financial support.
The average loan size first-time buyers received from family or friends reached almost £13,700 up from £13,000 last year. Yet, the amount requested by second steppers to help them move up the ladder has increased by almost £7,000 in the past 12 months to reach £19,216 (up from £12,746 in 2011).