How do I plan for moving up the property ladder?

[Silversliver1]

Hello.
I hope to be able to afford to move house in 2 years. This is necessary as we are very overcrowded.
I wonder if anyone could please tell me what I can do to prepare. I am decluttering, but no idea of the process as have only bought one house.
In what order do I need to do things please?
I will be buying on my own as a single parent. Our home is so small that I am trying to focus forwards to have something to look forward to and so the minute I can afford it, we can go for it.
Thank you in advance for any replies.

For now focusing on decluttering and saving. Have a look around are there any jobs which need doing?

I also mean things like when do i go for a new mortgage, before or after viewing (for example)

My bathroom could do with replacing but I figure the new owners would probably do that themselves. Thanks very much I am really trying to save everything I can

I would get the property valued now so you can understand what it's worth and how much equity you have in the property. Estate agents can also say if they think it's worth redoing bathroom etc.

Make a list of fees. They are higher when you're buying and selling due to estate agents fees and extra conveyancing coats.

Get a agreement in principle in place before you start viewing. Put yours up for sale and get looking.

Good idea to get it valued now thanks. Round here things tend to sell very quickly so i do want to be prepared.
I should also look into estate agent fees for buying and selling. should you do both through the same agent ideally?
Will also enquire about solicitor costs.
I bought this house from a family member so no experience of estate agents either.

I cant put up for sale for at least a year, probably 2, due to me getting a pay increase and equity increasing (am overpaying mortgage).
I usually overpay once a year. Is it best to do that for next 2 years or save do you think?
It's so difficult on your own!

You'll only have estate agents fees for selling. The person who sells to you will pay their estate agent fees. It's unlikely that the house you buy will be listed with the same estate agent, unless there are not many in your area? You could try selling privately but I don't have experience of that.

Is it just fees you need to save for or do you think your equity won't be enough for a move?

It's not essential, but you should get a decision in principle from a mortgage lender when you're ready to move.

It will make you more appealing to sellers if they know you can get a mortgage.

If you're selling and buying at the same time, it's not really up to you to have the same estate agents. The people you purchase off may have a different estate agents to the one you're selling your property with.

We are currently buying a selling and it was a plus point to sellers that we coincidentally has the same estate agent as them.

Ok thank you so much.
I will be shifting employers when i am ready to move. So is it 3 months payslips needed for mortgage? I need to know how much they will lend me too before I view.
I think my equity will be enough but I want enough disposable cash to cover everything really.
Its hard because I don't want to get the kids hope up but I really am determined to make it happen. Ive been reading up on meal planning etc for a while.
Kids activities are slowing things down but not sure stopping them is the right thing. 300 pounds a month on music and sport is a lot.

If you are two years away, I wouldn’t worry about getting a valuation or a mortgage in principle yet - it’ll be very outdated.

Right now it’d be about doing any work that needs doing - if you get another two years out of the bathroom, will it look in desperate need of updating then? That will affect value - and saving.

You’ll either need 3 or 6 months payslips for your new mortgage, depending on the bank, but usually three. You’d be able to get an idea of how much they’d lend you on your new salary through getting an AIP, and then you’d do viewings, and when you have an offer accepted, convert your AiP into a full mortgage offer.

Decluttering is a good idea.

Estate agents fees and solicitors fees change a lot; most places near me charge around 2-3% of house value as the EA few. Solicitors will vary depending on what you’re selling; what you’re buying and where. Leasehold tends to cost more. Stamp duty will depend on what your purchase costs.

But the numbers really only make sense when you’re ready to go. We first listed in February 2020, came off the market last summer and are now in the process of buying and selling, and everything is different to last years figure. The valuations; the costs; etc.

So your big things right now are maintenance, decluttering and saving, realistically.

Most houses are freehold here.
Thank you.
I may look into the bathroom. Ours is a tiny ex council house and likely to be bought for buy to let or a first time buyer family. So spending a lot doesnt make sense but I see your point. Its a plain white suite but tiles a bit mouldy which may put some off. Next doors guttering also leaking so I need the join between theirs and ours needs doing before the winter or will cause damp. Their house is very unkempt which is another worry.

I also applied for a second job but am waiting to hear about an interview.

Charges and fees to consider; we're paying 0.75% plus vat estate agents fees and about £2k in Solicitors fees. Then you'll have moving costs and if you're in a fixed Mortgage you might have an early repayment charge to pay it off.

Thank you for those figures, my fixed term ends this month and am hoping to overpay for next 2 years.
Our furniture is well worn now. Mainly cheap mdf type bedroom furniture and second hand. But, I am hoping to move then start doing one room at a time whilst keeping the same stuff.
I am in no rush to decorate the new place .
How much is removal costs if within the same city?
How early before moving do you pack?
I'm keeping going by trying to keep current decor clean and presentable and staying on top of the garden, rather than spending lots. Like my kitchen lino is quite old but I am just trying to keep everywhere clean. It is an ex council kitchen in good condition but I suspect someone will fit their own.
There is so little space so wear and tear inevitable but am trying to minimise it.

Reduce any unnecessary direct debits you have now, this can improve your mortgage capacity. Eg if you can stop any gym memberships or subscriptions do.

If you can take any short term steps to reduce your costs, do. Eg calling in childcare favours/family help to reduce your monthly outgoings. Bank calculations of what you can afford to borrow are quite formulaic so you want to look as good on paper as possible. Make sure your electoral roll details are up to date etc.

Wow interesting I have just done this! Managed to save around 100 pounds a month on stuff I don't use.
No family or many friends unfortunately. So noone but me to save and support us. No maintenance or anything.
I would really like a newer car for instance.And did wonder about getting a 2 yr loan instead of overpaying, which is doable but i think it puts me back because what is the most necessary is a bigger home. I currently sleep on a blow up mattress on my youngest child's floor. Plus I can get a works car (NHS) once we have moved.
Good point re electoral roll.
I need to reduce the kids activities but their coaches and tutors are very defensive if you suggest cutting down. Probably due to the pandemic and losing income. As we are regulars though I am going to ask.
I already go to Aldi, have sold old house stuff and kids toys etc.
All decisions are made with 2 years on mind. I have been doing this for a year now having realised there's a chance to upsize. Any advice on getting through 2 more?
We go out a lot for walks and free activities that way the house feels less claustrophobic in the evening. I hope not to spent too much over the summer too.
I might create a countdown calendar in another year but dont want to do that too early.

Also to get my current mortgage I needed a broker. That cost over 500 quid. I am hoping to change my bank to the mortgage provider and go direct to them as it will save us a bit.
This is all post divorce and I'm finding it hard work but exciting at the same time finding my way.

I'd keep an eye on Rightmove i the area you want to move to. For example you might be decide a bigger kitchen is your priority and yours measures, say 2m X 3m so a new home's kitchen would need to be larger. Maybe make a note of some roads where suitable properties have come up in the (long) run up to your future purchase. You could go and see the outside of a house. It often looks better in photos than in real life. All good research, and then when you are ready, you'll be ready!

TBH I know the road/area and know it well. There are 2 houses there for sale currently and I darent look as I know it may be disappointing.
I don't know what mine is worth either. I figured its not worth worrying over for another year yet as I can only do what I'm doing.
Our area is ok but has a rubbish reputation and I feel embarrassed when people ask where we live. That's equally a driver although I know I shouldnt feel like that. I can see peoples faces change as they think we are 'like them' until they ask

Review your spending and reduce incidentals as much as possible in the few months before you apply for a mortgage. Bizarrely, if you spend a lot on eating out, for example, they would assess this cost as fixed and not one that you would reduce to prioritise the mortgage if needed.

Never go overdrawn but conversely, put some of your normal spending on a credit card that is cleared every month by direct debit. The former is seen as bad, the latter good.

If you are employed, have a good credit rating and not stretching income multiples or affordability, there's no need to pay a broker.

Either research on money supermarket and apply direct or use something like money supermarket.

Thanks very much.
I owe 400 on Very and 200 on CC. This has crept up in recent months so every month as my salary comes in I am paying off 1000 pounds. Over the summer I am trying to break the pattern.
I will put shopping/petrol on Cc after that but nothing else.
I never go into overdraft anyway.
I have told my children that we are no longer having takeaway to try and be more healthy. Truth is I can't afford them and seeing 25 quid go on my CC repeatedly has made me really think.
I also got my bank app to 'ping' me whenever I spend money and it made me so much more aware.

It is bedrooms and bathrooms which are most important. I need 2 toilets due to a medical issue. And 3 bedrooms-we currently have 1 proper bedroom and a box room which only fits a toddler bed really.

Following as I'm in the same situation, looking to sell this one and buy next one in 2/3 years. On course savings wise for 2 years but don't know enough about fees or how to prepare

On overpaying your mortgage:
I know we had to do it on a particular date to reduce interest payments, putting the money in before that had no effect on the capital outstanding and hence the interest charged. Check your terms and conditions again just to make sure.

Good plan. Get supermarket pizza or curry for a fraction of the price if you want low effort treat food without the expense.

Don't use Klarna or similar either. Banks view this like payday loans, very bad.

If you need to order things you might not be keeping, again use your credit card as you will have had a refund before you have to pay the bill.