First-time sellers pay more for mortgages

People taking the second step on the property ladder are paying up to £200 more a month on their mortgage repayments, new figures show.

More than four first-time sellers in five pay more for the mortgage on their second home and 30 per cent spend over £200 a month extra, research from First Active and Datamonitor shows.

Collectively, this means second-time buyers spend £400 million extra a month on repayments.

And this leaves people looking to see if they can save money by changing provider.

Six first-time sellers in ten change their mortgage provider when moving and almost four in ten rely on their own research to change their mortgage.

Others use financial advisers, brokers and even estate agents to recommend a new mortgage deal, with just one in four not changing mortgage providers.

"This report is one of the first of its kind on the first-time seller market, and 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," said Andrew Nicholson, First Active marketing manager.

"Selling a property for the first time is a big move, so it’s important that people also seek professional advice where they can."

As well as paying more for their mortgage, 58 per cent of first-time sellers found moving home stressful - compared with 48 per cent of first-time buyers and 54 per cent of people who have already sold more than one home.

"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 ladder," said Mr Nicholson.

He added: "The fact people in the UK spend £400 million a month extra on their mortgage repayments when they buy their second home is quite staggering, as well as the sacrifices that they are prepared to make just so they can take the next step up on the increasingly slippery property ladder."

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