Average Age of a Second-Time buyer reaches Forty Two

- Prospective second time buyer will wait 14 years before moving on from their first home.
- Second-time buyers must now wait 15 years longer than in the 60s to move up the property ladder.
- The average age of a second-time buyer is now 42, reveals Post Office’s Step-Up report.

Those currently living in their first home took their first step onto the property ladder at the age of 28, but expect to wait a further 14 years before climbing onto the second rung (42 years old). In contrast, those who have already made this leap and are currently second time property owners did so at the age of 34 – a head start of eight years.

In the mid-1960s, second-time buyers had to wait just three years before moving on from their first home as the average age of a first-time buyer between 1965 and 1969 was 25, moving onto their second home at the age of 28. However, in recent years, this gap has climbed to nine years; the average age of a first-time buyer between 2010 and 2013 was 30, moving onto their second home at the age of 39.

Table shows the average age of first and second-time buyers from 1960-2013.

Prospective second-time buyers would be encouraged to move if house prices were to fall (60 per cent), and just under half (45 per cent) would be swayed if they found their dream home. Two in five (41 per cent) could be charmed into moving by competitive mortgage rates, while a quarter (25 per cent) would be led by their relationship and consider moving up if they had plans to get married or start a family.

John Willcock, Head of Mortgages at Post Office, said: “Taking that all-important step onto the housing ladder sometimes seems like the biggest hurdle a homebuyer will face. However, we can see that it doesn’t get any easier as people try to move up the property ladder and second-time buyers can face their own set of challenges.

“Second time buyers now expect to wait until they are in their 40s before moving on from their starter home, perhaps having to put on hold placing their roots or building a family home for years to come. At the Post Office, our products are some of the most competitive on the market and many come without arrangement fees, free standard variation and there’s no higher lending chargeA fee which may be charged if the amount borrowed is more than a given percentage of the value of the property. The lender will use the fee for an insurance policy to protect them against financial loss in the event of a borrower not meeting their mortgage payments. The fee is usually payable in full up front. You may be liable for any mortgage shortfall debt if after possession the sale proceeds are not enough to repay your outstanding debt. Choose a Post Office mortgage and the Higher Lending Charge is paid by us, the lender, on Loan to Value LTV mortgages above 75%. No Higher Lending Charge is payable on LTV mortgages up to 75%. See the Lending Criteria for more information., which should give movers a helping hand covering costs as they climb the property ladder”.

Customers can pick up information about Post Office’s mortgage range and rates online at http://www.postoffice.co.uk/mortgages or from one of over 11,500 Post Office branches across the UK. Customers can also arrange a call-back from a mortgage specialist at the call centre, via all branches, or call the Post Office directly on 0800 077 8033.

ENDS

Populus interviewed a random sample of 4093 GB adults aged 18+, online, between 17-24 May 2013. Surveys were conducted across the country and the results have been weighted to the profile of all adults. Populus is a founder member of the British Polling Council and abides by its rules. Further information at www.populus.co.uk

In August 2012 Post Office introduced Mortgage Specialists to four of its larger branches in the UK, and has rolled out the initiative at further branches since. The Mortgage Specialists are able to discuss each individual’s needs and answer questions to help customers make an informed decision about the suitability of the products. In addition, the majority of customers will be able to get a decision in principle within minutes. First-time buyers, those wishing to move, or customers looking to switch to a better deal will be able to book a free, no-obligation appointment in selected branches.

Post Office Limited has an unrivalled national network of over 11,500 branches across the UK, more than all the high street banks combined, and sits at the heart of many communities across the country. The Post Office has made a commitment to no more branch closure programmes. It provides around 170 different services and products spanning financial services including savings, insurance, loans, mortgages and credit cards. Post Office also offers Government services; telephony; foreign currency; travel insurance and mail services.

It serves around 20 million customers a week and half of all small businesses. 93% of the total population live within one mile of a post office and 99.7% within three miles. For many rural communities the post office is the only retail outlet. Post offices remain highly valued and trusted and are the focal point for many communities. For more information, visit www.postoffice.co.uk

Post Office mortgages in 2012 have won the following awards from What Mortgage magazine – Best fixed Rate Provider and Best Online Lender for the third year, and recently have also received Best Online Lender from Your Mortgage for the fourth year running.

Post Office Mortgages are offered in partnership with Bank of Ireland UK. Bank of Ireland UK has been the exclusive partner to the Post Office for the provision of financial services and products since 2003. The partners’ venture has become one of the UK’s fastest growing financial service providers with almost three million customers and a savings book of £18 billion.

Bank of Ireland has supported customers in the UK for many decades. Bank of Ireland UK plc, is a wholly owned subsidiary of Bank of Ireland Group, separately incorporated and is authorised and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Activities related to the Post Office partnership are conducted within this entity and as such, all retail deposits up to £85,000 with the Post Office are protected under the UK’s Financial Services Compensation Scheme and ring-fenced in the UK. At 31 December 2012 Bank of Ireland (UK) plc had a loan to deposit ratio of 77% with customer deposits of £23.3 billion utilised to fund customer lending of £18 billion (primarily comprising £12.6 billion of UK residential mortgages). In November 2010, in the UK Government's report 'Securing the Post Office network in the digital age', Bank of Ireland UK received the explicit support of the Coalition Government for its continued partnership with the Post Office.

Contact - Carmel McCarthy