Second-steppers turn to higher LTV mortgages as deposits fall

24 July 2026

Barclays mortgage data shows the average value of home movers’ (non-first-time buyers) deposits fell -24.8 per cent year-on-year
However, the average purchase price for home movers increased 1.0 per cent year-on-year in June, as borrowers make use of higher loan-to-value mortgage products to climb the ladder
34 per cent of prospective second-steppers say they feel stuck in their first property because it is too expensive to move
Meanwhile, solo first-time buyers are more than twice as common as they were pre-1980, as buyers seek independence and security, though many still require family support to get started
Barclays Property Insights analyses proprietary mortgage data alongside consumer research to uncover the key trends shaping the UK housing market

Barclays Property Insights data highlights the affordability pressures impacting both first-time buyers and second-steppers. Average deposits for home movers have fallen significantly year-on-year, despite house price growth. At the same time, solo homeownership has become increasingly common despite ongoing affordability pressures, as buyers balance independence, financial security and long-term stability.

Barclays mortgage data shows that the average purchase price for home movers (non-first-time buyers) increased 1.0 per cent year-on-year in June, however the average deposit value fell -24.8 per cent. As a result, more movers are turning to larger mortgages to bridge the gap, with the proportion borrowing at more than 75 per cent LTV rising from 18.2 per cent to 22.1 per cent over the past year.

Over a third of second-steppers (34 per cent) say they feel stuck in their current property because it is too expensive to move. Many recent first-time buyers are already planning cautiously, with 41 per cent saying they will try to keep their next purchase close in value to their current home to reduce upfront costs.

However, this may be easier said than done – Barclays mortgage data shows that the average house price for home movers is 59.5 per cent higher than for first-time buyers, with the gap widening 1.2 per cent year-on-year in June. Additional support also continues to be crucial for this segment, with a fifth of second-steppers (22 per cent) saying they will need help from family for their next purchase.

These affordability pressures are also shaping how far people are willing, or able, to move. Londoners are most likely to say it is too expensive to move at 37 per cent, whereas those in Wales are least likely (21 per cent). Yet second-steppers remain reluctant to compromise on location, with two thirds (65 per cent) saying they would not move more than 10 miles away to find a suitably priced home.

Solo buyers seek independence despite affordability challenges

While many existing homeowners feel stuck on their current rung of the housing ladder, a growing number of buyers remain determined to take their first step onto it. More people report purchasing homes on their own than in previous generations, reflecting changing lifestyles and a strong desire for financial independence.

Just 15 per cent of those who bought their first home before 1980 say they did so by themselves, while 83 per cent bought with a spouse or partner. However, for purchases since 2020, this drops to 54 per cent of first-time buying with a spouse or partner, reflecting broader cultural shifts. Barclays mortgage data also shows that over a third of completions (36.9 per cent) were for solo buyers in June.

For many, buying alone is driven by circumstance. The most common reason cited is being single but wanting to own a home (36 per cent), followed by valuing the independence of solo homeownership (29 per cent) and wanting control over housing decisions (22 per cent). The trend comes amid a broader desire for long-term stability, with more than half (55 per cent) of UK adults saying homeownership is the greatest source of long-term financial security.

Conversely, the most common reason cited by those planning to buy with another person was wanting to live with the person or people they are buying with (46 per cent), followed by feeling more financially secure (24 per cent) and wanting to share responsibility (22 per cent).

However, independence does not always mean going it alone financially. Four in 10 homeowners (39 per cent) say they received a lump sum financial gift from parents to help buy their first home, rising to 53 per cent for the most recent first-time buyers (2020 onwards).

Lee Chiswell, Head of Mortgages at Barclays, said:

“The cost of moving up the ladder is forcing many second-steppers to evaluate how far their deposit can stretch, whether they need additional support from family, and what they need from their mortgage.”

“At the same time, more buyers are entering the market solo than in previous generations, showing that the desire for independence and long-term security remains strong, even in a challenging market. As housing journeys become more varied, there is no longer a ‘typical’ path onto the property ladder. It's increasingly important that buyers have the confidence and support to make decisions that work for their individual circumstances.”

Julien Lafargue, Chief Market Strategist at Barclays Private Bank and Wealth Management, said:

“Affordability has been gradually improving as pay growth outpaces house prices and rates come down from their peak, but the outlook from here is unusually uncertain. The Bank of England is holding at 3.75% with a divided committee, and the next move looks finely balanced.

“This alongside elevated policy uncertainty is forcing home buyers to proceed with caution. That said, demand that has paused is waiting rather than gone, and once the rate and policy picture clears, the market appears to have a solid base to build from.”