Second time buyers face £62,000 upsizing gap

Younger homeowners encouraged to overpay on their mortgage

First time buyers who bought a property in 2007 face a gap of £62,281 when trying to move to the second rung on the housing ladder, according to research from online bank first direct.

Ian Bartholomew, Senior Mortgage Product Manager at first direct, said: "In a climate of falling house prices in many parts of the country, first time buyers can no longer rely on funding their next move with profits from the sale of their home. Those that haven't taken steps to counter this may find that they can't afford a deposit and the additional costs associated with moving, when looking to reach to the next rung of the ladder. For younger homeowners hopeful of moving to a bigger property in years to come, overpaying on their mortgage is the key to building up enough equity to enable their next move."