Upgrading costs first-time sellers 400 million a month
The first ever report on the first-time seller market revealed 83 per cent of first-time sellers face spending extra money on mortgage repayments, with almost a third paying an extra £200 a month. This is despite the fact that a quarter will choose a property that requires a lot of improvement work.
When it comes to sourcing information on the right mortgage, six-in-ten change their mortgage provider when moving and four-in-ten rely on their own research to change their mortgage.
Andrew Nicholson, marketing manager for First Active, said: “It is encouraging to see that four-in-ten first-time sellers are researching the market themselves to make sure they get the best deal. A lot of focus has been put on the plight of first-time buyers, but it can be tough even when you are on the property ladder. The fact that people spend £400 million a month extra on their mortgage repayments when they buy their second home is quite staggering, as well as the sacrifices they are prepared to make just so they can take the next step up on the increasingly slippery property ladder.”
Cath Hearnden, director of brokerage My Mortgage Direct, commented: “The amount that people spend on a second home does tend to jump a lot from their first purchase. I think this is partly because people see how stressful selling is and want to make the move to somewhere that they will stay for a long time. A couple might want to do this, because they are both working and have the income.”