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."

The data shows that the number of “unlawfully” large infant classes has doubled in the last 12 months alone
i100Mike Stuchbery, a teacher in Great Yarmouth, said he received abuse
Arts and Entertainment
The starship in Star Wars: The Force Awakens
filmsThe first glimpse of JJ Abrams' new film has been released online
Rio Ferdinand returns for QPR
sportRio Ferdinand returns from his three-game suspension today
The Speaker of the House will takes his turn as guest editor of the Today programme
arts + ents

Watch the spoof Thanksgiving segment filmed for Live!
Billy Twelvetrees will start for England against Australia tomorrow with Owen Farrell dropping to the bench
rugbyEngland need a victory against Australia today
Arts and Entertainment
The cover of The Guest Cat – expect to see it everywhere
Tyson Fury poses outside the Imperial War Museum in south London ahead of his fight against Dereck Chisora
boxingAll British heavyweight clash gets underway on Saturday night
i100 Charity collates series of videos that show acts of kindness to animals
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

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

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Austen Lloyd: Company Secretary

    Excellent Package: Austen Lloyd: EAST ANGLIA - SENIOR SOLICITOR LEVEL ROLE** -...

    Citifocus Ltd: German Speaking Client Specialist

    £Attractive Package: Citifocus Ltd: Prestigious asset management house seeks a...

    Citifocus Ltd: Performance & Risk Oversight

    £Negotiable: Citifocus Ltd: This is a varied role focusing on the firm's mutua...

    h2 Recruit Ltd: Sales Director - SaaS (SME/Channel) - £140,000 OTE

    £90000 - £140000 per annum + benefits: h2 Recruit Ltd: Are you a high achievin...

    Day In a Page

    Homeless Veterans Christmas Appeal: ‘We give them hope. They come to us when no one else can help’

    Christmas Appeal

    Meet the charity giving homeless veterans hope – and who they turn to when no one else can help
    Should doctors and patients learn to plan humane, happier endings rather than trying to prolong life?

    Is it always right to try to prolong life?

    Most of us would prefer to die in our own beds, with our families beside us. But, as a GP, Margaret McCartney sees too many end their days in a medicalised battle
    Thomas Cook's outgoing boss Harriet Green got by on four hours sleep a night - is that what it takes for women to get to the top?

    What does it take for women to get to the top?

    Thomas Cook's outgoing boss Harriet Green got by on four hours sleep a night and told women they had to do more if they wanted to get on
    Christmas jumper craze: Inside the UK factory behind this year's multicultural must-have

    Knitting pretty: British Christmas Jumpers

    Simmy Richman visits Jack Masters, the company behind this year's multicultural must-have
    French chefs have launched a campaign to end violence in kitchens - should British restaurants follow suit?

    French chefs campaign against bullying

    A group of top chefs signed a manifesto against violence in kitchens following the sacking of a chef at a Paris restaurant for scalding his kitchen assistant with a white-hot spoon
    Radio 4 to broadcast 10-hour War and Peace on New Year's Day as Controller warns of cuts

    Just what you need on a New Year hangover...

    Radio 4 to broadcast 10-hour adaptation of War and Peace on first day of 2015
    Cuba set to stage its first US musical in 50 years

    Cuba to stage first US musical in 50 years

    Claire Allfree finds out if the new production of Rent will hit the right note in Havana
    Christmas 2014: 10 best educational toys

    Learn and play: 10 best educational toys

    Of course you want them to have fun, but even better if they can learn at the same time
    Paul Scholes column: I like Brendan Rodgers as a manager but Liverpool seem to be going backwards not forwards this season

    Paul Scholes column

    I like Brendan Rodgers as a manager but Liverpool seem to be going backwards not forwards this season
    Lewis Moody column: Stuart Lancaster has made all the right calls – now England must deliver

    Lewis Moody: Lancaster has made all the right calls – now England must deliver

    So what must the red-rose do differently? They have to take the points on offer 
    Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

    Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

    It's in all our interests to look after servicemen and women who fall on hard times, say party leaders
    Millionaire Sol Campbell wades into wealthy backlash against Labour's mansion tax

    Sol Campbell cries foul at Labour's mansion tax

    The former England defender joins Myleene Klass, Griff Rhys Jones and Melvyn Bragg in criticising proposals
    Nicolas Sarkozy returns: The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?

    Sarkozy returns

    The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?
    Is the criticism of Ed Miliband a coded form of anti-Semitism?

    Is the criticism of Miliband anti-Semitic?

    Attacks on the Labour leader have coalesced around a sense that he is different, weird, a man apart. But is the criticism more sinister?
    Ouija boards are the must-have gift this Christmas, fuelled by a schlock horror film

    Ouija boards are the must-have festive gift

    Simon Usborne explores the appeal - and mysteries - of a century-old parlour game