Moving up the Property Ladder

If you already have a foot on the property ladder and are considering a move, the costs you face are approximately the same as those from a first-time buyer, with one major difference: As long as your current home has risen in value since you bought it, the sale proceeds will provide you with a deposit of your next property. How big a deposit depends on how much you have left after:

• Negotiations with your own buyer - you may end up reducing the asking price by as much as 10%
• Paying the realtor - unless you choose to sell privately
• Paying off what you owe on your current mortgage - together with any charges for repaying it early (if applicable, though these charges may be waived if you take out your next mortgage with the same lender)
  
• Meeting the legal fees involved in selling
  
• Covering the cost involved in buying the next property
• Removal expenses

If all these costs add up to an amount that reduces the potential sale proceeds to zero - and you have no additional cash - trading up is not an affordable option. You will need enough out of what's left to put down a deposit of at least 5-20% on the new property, and of course you must also earn enough to get the size of mortgage you need.