Moving up on housing ladder becoming cheaper

13 January 2009

The cost of ‘trading up’ from the bottom rung of the housing ladder has decreased as property prices continue to fall, an expert has suggested.

Estate agency website Propertyfinder.com claims that the difference between the average price of a one-bedroom and a two-bedroom home had fallen from £41,500 in December 2007 to £31,000 at the end of 2008.

So homeowners looking to move up on the housing ladder like this will need, on average, £10,500 less than they would have in 2007, which means many will need a relatively small (and therefore cheap) mortgage for their new home.

A mortgage expert for Think Money said: “Despite the perceived problems surrounding the housing market, now is potentially a very good time for people to be moving up on the housing ladder, as it is noticeably cheaper.

“Households with enough equity should find it easier to move up the ladder, providing they are able to obtain the additional funds – i.e. a mortgage.

“We advise people looking to move to get professional mortgage advice before they commit themselves to anything. Speaking to the right people could greatly improve their chances of finding the best deal.”

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Think Money work with a panel of lenders to offer a range of mortgages. If you are considering taking out a mortgage, contact one of our expert mortgage advisers today.

Tags: housing ladder, mortgage, mortgage advice, moving up, Propertyfinder.com, Property Finder

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