Getting on the ladder is hard, but the next rung can be as steep

Not all first-timers are buyers.

For those already on the ladder and looking to trade up, life can be just as tough as a first- time seller, according to new research from mortgage provider First Active .

Among people in this category, more than four in five suffer soaring mortgage repayments when they reach the next rung - with a third having to spend an additional £200 each month.

And that's before fees and higher taxes, warns Melanie Bien of broker Savills Private Finance. "Trading up for the first time can be an expensive business."

As most will move to a bigger property, they may also be jumping up a price band and over a stamp-duty threshold. If you buy a home costing more than £250,000, you will have to pay 3 per cent of the purchase price (at least £7,500) in duty- instead of the 1 per cent many pay for their first home (a minimum of £1,250).

The mortgage valuation fee charged as part of a home move is also calculated according to the price of the property, so this is likely to be higher - as are solicitors' fees.

Some 15 per cent of the people surveyed by First Active also report that the transition to dealing with buyers as well as vendors is the most stressful aspect of being a first-time seller.

"Your main bargaining point - that you were chain-free - no longer applies," adds Ms Bien.

And you now have the added stress of trying to time the sale of your existing property with the purchase of a new one.

"You can try to synchronise completing on both at the same time, but only a few lucky people manage this," says Nick Gardner of broker Chase de Vere Mortgage Management.

"Many end up staying with friends or family - or even renting for a short period until the owners of the property they are buying are ready to move."

It often makes more sense, he adds, to find a buyer for your property before searching for a new home. "This puts you in a stronger bargaining position as a house-hunter, because most vendors won't take you seriously if you are selling but have not yet received an offer."

The National Association of Estate Agents (NAEA) warns that struggling first-time sellers will also be the ones who suffer most from the introduction next June of Home Information Packs (HIP), under which vendors pay for all the survey information.

In an NAEA survey, three- quarters of first-time sellers reported that the estimated costs of compiling HIPs - between £600 and £1,000 - would discourage them from putting their homes on the market. This is because the HIP fee will have to be paid whether the property is sold or not.

"Costs like these mean many may find the next step up the ladder too much of a stretch," says NAEA's chief executive, Peter Bolton King. "This will affect the rest of the housing market, slowing it right down and causing frustration for first- time buyers and those further up the ladder alike."

Hazel and David Lambert bought their first home in Basildon, Essex, just over a year ago. At the time, they had just had a baby and were looking to trade up to a family house within 12 months. "We plan to have more children and want to move into a bigger place - with four bedrooms and lots of space," says Hazel.

For work reasons, they hope to relocate to Reading - "We know property is expensive and will mean a jump in our monthly repayments - and we are worried about being part of a chain."You always hear about people being gazumped - it sounds problematic," adds Hazel. "We'll think very carefully about the timing."

Life and Style
techPatent specifies 'anthropomorphic device' to control media devices
Voices
The PM proposed 'commonsense restrictions' on migrant benefits
voicesAndrew Grice: Prime Minister can talk 'one nation Conservatism' but putting it into action will be tougher
News
Ireland will not find out whether gay couples have won the right to marry until Saturday afternoon
news
News
Kim Jong-un's brother Kim Jong-chol
news
News
Manchester city skyline as seen from Oldham above the streets of terraced houses in North West England on 7 April 2015.
news
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Guru Careers: Software Developer / C# Developer

    £40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...

    Neil Pavier: Management Accountant

    £45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...

    Sheridan Maine: Commercial Accountant

    £45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...

    Laura Norton: Project Accountant

    £50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...

    Day In a Page

    Sun, sex and an anthropological study: One British academic's summer of hell in Magaluf

    Sun, sex and an anthropological study

    One academic’s summer of hell in Magaluf
    From Shakespeare to Rising Damp... to Vicious

    Frances de la Tour's 50-year triumph

    'Rising Damp' brought De la Tour such recognition that she could be forgiven if she'd never been able to move on. But at 70, she continues to flourish - and to beguile
    'That Whitsun, I was late getting away...'

    Ian McMillan on the Whitsun Weddings

    This weekend is Whitsun, and while the festival may no longer resonate, Larkin's best-loved poem, lives on - along with the train journey at the heart of it
    Kathryn Williams explores the works and influences of Sylvia Plath in a new light

    Songs from the bell jar

    Kathryn Williams explores the works and influences of Sylvia Plath
    How one man's day in high heels showed him that Cannes must change its 'no flats' policy

    One man's day in high heels

    ...showed him that Cannes must change its 'flats' policy
    Is a quiet crusade to reform executive pay bearing fruit?

    Is a quiet crusade to reform executive pay bearing fruit?

    Dominic Rossi of Fidelity says his pressure on business to control rewards is working. But why aren’t other fund managers helping?
    The King David Hotel gives precious work to Palestinians - unless peace talks are on

    King David Hotel: Palestinians not included

    The King David is special to Jerusalem. Nick Kochan checked in and discovered it has some special arrangements, too
    More people moving from Australia to New Zealand than in the other direction for first time in 24 years

    End of the Aussie brain drain

    More people moving from Australia to New Zealand than in the other direction for first time in 24 years
    Meditation is touted as a cure for mental instability but can it actually be bad for you?

    Can meditation be bad for you?

    Researching a mass murder, Dr Miguel Farias discovered that, far from bringing inner peace, meditation can leave devotees in pieces
    Eurovision 2015: Australians will be cheering on their first-ever entrant this Saturday

    Australia's first-ever Eurovision entrant

    Australia, a nation of kitsch-worshippers, has always loved the Eurovision Song Contest. Maggie Alderson says it'll fit in fine
    Letterman's final Late Show: Laughter, but no tears, as David takes his bow after 33 years

    Laughter, but no tears, as Letterman takes his bow after 33 years

    Veteran talkshow host steps down to plaudits from four presidents
    Ivor Novello Awards 2015: Hozier wins with anti-Catholic song 'Take Me To Church' as John Whittingdale leads praise for Black Sabbath

    Hozier's 'blasphemous' song takes Novello award

    Singer joins Ed Sheeran and Clean Bandit in celebration of the best in British and Irish music
    Tequila gold rush: The spirit has gone from a cheap shot to a multi-billion pound product

    Join the tequila gold rush

    The spirit has gone from a cheap shot to a multi-billion pound product
    12 best statement wallpapers

    12 best statement wallpapers

    Make an impact and transform a room with a conversation-starting pattern
    Paul Scholes column: Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?

    Paul Scholes column

    Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?