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Are rising house prices leading to higher numbers of homemovers?

Meanwhile, more than a third of borrowers worry that their mortgage application will be turned down

Alex Johnson
Monday 13 January 2014 14:28 GMT
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Around 337,500 people have moved up the housing ladder in 2013, according to Lloyds Bank who argue that the three per cent jump compared to 2012 is due to rising house prices have helped homemovers find a higher level of deposit for their next property.

The average deposit put down by a homemover in 2013 was £76,398, a figure which rose six per cent in the past 12 months, although movers in London averaged £144,505.

"As house prices have increased over the last 12 months, we’re seeing more people look to take the next step on the housing ladder," said Marc Page, Lloyds Bank mortgages director. "Higher levels of equity are increasing the average deposits and this, in turn, is giving homemovers more options.

"This year we’ll see Help to Buy enable more homeowners to progress to the next rung of the ladder, and as a result we would again expect the number of homemovers to increase in 2014.”

However, a second set of figures from TSB suggests that almost two fifths of those searching for a new home are concerned that their mortgage application will be rejected. Younger buyers - those under the age of 35 - are the most concerned (66%).

Londoners appear to be the most worried (54%), followed by aspiring homeowners in the Midlands (46%) and south east (40%). People in the north east of England and Yorkshire and the Humber were most confident, with less than a fifth indicating they are worried about the outcome of their application.

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