Two-thirds of second steppers can't get a mortgage to move home, says Lloyds TSB

Two out of every three people trying to sell their first home are unable to do so because of problems getting a mortgage, according to Lloyds TSB research.

The so-called second steppers are finding it tough to move up the ladder and buy a new property.

So much so that 22% believe it is now harder to move up the ladder than it was to get on it in the first place.

Out of 500 respondents, 65% said raising a deposit was a serious obstacle, 53% indicated a lack of affordable housing, 52%t were concerned with cost including stamp duty and 25% are trapped by negative equity in their current homes.

These are a wide variety of problems without an easy solution and it shows the difficulties still facing borrowers who want the best value mortgages.

The Government's funding for lending scheme has provided banks with cheap loans which have cut mortgage rates and increased lending.

But these loans have primarily been directed into a rate war for people with 40% equity in their homes.

Banks are all targeting the same customers leaving many feeling like prisoners in their properties unable to get the best rates or sometimes move at all.

Falls in property prices mean many who bought at the peak of the boom have now slipped into negative equity.

But it is not all doom and gloom for second time borrowers and there are deals available to help people move home for the first time.

Can I stop being trapped?

If you are a second stepper trapped by one of the problems above then a mortgage broker is the best person to find a specialist deal.

Lloyds Banking Group, for instance, have a deal specifically designed to help people in negative equity.

Some building societies offer specialist deals that can help people rebuild in negative equity and get back on track.

If raising a deposit is the main problem then there are a growing number of high loan to value deals available and not just for firsts-time buyers.

The Government's NewBuy programme provides 95% deals for people looking to buy new build homes with specific builders and lenders.

It is widely available now and can help you upgrade your property with a low deposit or move to one you prefer.

The number of higher loan to value products above 80% is growing too with lower interest rates due to Government schemes and low Bank of England interest rates.

The cost of stamp duty will always be a major pain for any mover and more than half of second steppers don't feel able to raise enough cash to do it.

The first point is that stamp duty is only payable on homes worth up to £125,000 which may help some.

While lenders will never lend above  the amount they believe you can afford it could be possible to get a higher loan that includes the cost of stamp duty.

However, stamp duty will unfortunately be a permanent thorn in the side of the housing market and annoy home moves until it is scrapped.

The lack of affordable housing is another intractable problem that seems to have no solution in sight with a distinct lack of home building.

One in four second steppers put the lack of affordable homes as their reason for not moving so it is a significant but not dominant reason.

Can I still get good rates as a second stepper?

Rates are as low as they have ever been at all levels of the mortgage market so it is a good time to take out a deal whether fixed, tracker or standard variable rate.

The problem for second steppers is not getting the best rate mortgages but accessing them at all. A mortgage broker can guide you through each of the problems facing second steppers outlined above.

They can tell you the deals available on affordable homes such as the Government's FirstBuy scheme and Lloyds' negative equity mortgage.

There is no silver bullet but the market is improving and second steppers should not give up trying to get a mortgage but maybe it is time to speak to a professional adviser.