Global and economic uncertainty is impacting how UK homeowners are managing their household finances, the latest Barclays research shows.
Almost one in five UK adults (17%) say their housing plans have been affected by the conflict in West Asia, with many taking action to protect against interest rate and cost of living pressures.
To safeguard against future rate rises, over a quarter of homeowners (27%) say they are overpaying on their mortgage, and a fifth (20%) of those remortgaging are looking to lock in a new rate as soon as possible in case of future volatility.
Existing homeowners cited a number of factors which could delay or prevent their next move. The top barrier was economic uncertainty, with three in 10 (29%) saying this could change their plans. Other factors include stamp duty (27%), moving fees (28%), mortgage rates (24%), and the price gap between their current home and available properties (24%). Nearly half of adults in work (45%) say their wages are not keeping pace with rising costs, so many may find it harder to take the next step up the ladder.
Facing these barriers, Barclays data shows that existing homeowners increasingly gravitate towards cheaper properties and larger mortgages. The proportion of home purchases below £500,000 rose to 73.2% year-on-year (up from 70.5% in March 2025), while the share of next-time buyers putting down a deposit of less than £20,000 increased to 56.7% from 43.2% over the same period.
Second steppers face the largest financial leap on the housing ladder
41% of homeowners say they are living in the first property they’ve ever owned, but moving up to the next rung of the property ladder can be challenging. First-time owners looking to move to their next home estimate needing to save an average of £75,648 to fund the purchase, on top of any proceeds from the sale of their current home. That figure breaks down into £41,751 for a deposit, £28,112 in stamp duty, and £5,785 in third party costs such as legal fees.
In contrast, third steppers and beyond estimate needing to save just £52,651 on average. This includes £19,835 for a deposit, £26,860 for stamp duty, and £5,996 in third party costs. That is £22,998 less than second steppers, reflecting the greater equity this group has typically built up in their current home. Over two in five (43%) of those further along the property ladder say they would not need to save anything for a deposit at all.
Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “Periods of geopolitical and economic uncertainty inevitably place greater focus on household finances, and we’re seeing homeowners and potential buyers respond in pragmatic ways. Borrowers are demonstrating resilience by overpaying where they can, reassessing their mortgage options, and thinking carefully about timing to maintain flexibility and control.
“For those moving from their first to their second primary residence, the challenge is more structural. Buyers at this stage often face the widest gap between properties, while still needing to fund deposits, stamp duty and moving costs largely from savings rather than equity alone. That makes second steppers particularly sensitive to economic pressures, even as they take considered steps to keep their housing plans on track.”
