The mortgage sector should concentrate on second-time buyers in order to stimulate the market, according to Legal & General mortgages director Ben Thompson.
He says too much focus is placed on first-time buyers to kickstart the market from the bottom up.
He says: “Obviously, the huge focus is on high-LTV products being required to kickstart the housing market. There have been a lot of req-uests for product innovation, different thinking and incentives to get that part of the market going. The point underlying all this is it does not feel as if we are stimulating and appropriately focusing on the second-time buyer market.”
Thompson says increasing awareness of the ability and attractiveness of moving house is a key factor.
He says: “It seems to me that almost nobody in that category of the market is moving, or very few indeed, so there could be more innovation and focus in that part of the market to stimulate more movement.
“Product innovation is certainly a part of that but it is also about creating awareness.”
London & Country head of communications David Holl-ingworth says: “There is certainly room for second-time buyers to secure mortgages and move. I suppose the only issue is that you need to have some first-time buyers coming in to fill that gap.”