WEBVTT - Your Ultimate Guide to Buying a Home 0:00:01.230 --> 0:00:04.050 Hello, I'm Iona Bain and welcome to A Little Bit 0:00:04.050 --> 0:00:06.930 Richer, brought to you by Legal & General. Now whether it's 0:00:06.930 --> 0:00:10.410 your first time or you're ready to upgrade your space, 0:00:10.650 --> 0:00:13.110 buying a home is one of the biggest financial and 0:00:13.110 --> 0:00:16.320 emotional decisions many of us will make. From figuring out 0:00:16.320 --> 0:00:19.829 what you can afford and navigating mortgage options to managing 0:00:19.829 --> 0:00:23.760 the legal process and understanding recent government changes, it can 0:00:23.760 --> 0:00:26.340 all feel a little bit overwhelming. So today we're going 0:00:26.340 --> 0:00:28.590 to walk you through this journey with none other than 0:00:28.590 --> 0:00:32.070 Sarah Tucker. Sarah is the founder and CEO of the 0:00:32.070 --> 0:00:36.000 Mortgage Mum, a national mortgage and protection broker. She's a 0:00:36.000 --> 0:00:39.870 qualified mortgage advisor, podcast host, and you'll often see her 0:00:39.930 --> 0:00:43.320 as the mortgage expert on our ITV's This Morning, so she 0:00:43.320 --> 0:00:46.200 really is the perfect person to make us feel confident 0:00:46.409 --> 0:00:49.440 about our next move. Welcome, Sarah. 0:00:49.470 --> 0:00:51.120 Hello. Thank you for having me. 0:00:51.210 --> 0:00:53.940 So if you're thinking about buying somewhere for the first 0:00:53.940 --> 0:00:57.990 time or you want to make that next move, what 0:00:57.990 --> 0:01:00.840 do you need to think about, especially when it comes 0:01:00.840 --> 0:01:04.620 to recent changes that might affect that process? Talk us 0:01:04.620 --> 0:01:07.319 through what's been happening in the world of mortgages and 0:01:07.319 --> 0:01:07.560 home buying. 0:01:07.560 --> 0:01:10.619 Well, it's been a lot of change, so there's been 0:01:10.620 --> 0:01:13.170 good change and there's been some negative change. So let's 0:01:13.170 --> 0:01:15.420 start with the negative because then we can move on 0:01:15.420 --> 0:01:18.240 to good news. The negatives is that the interest rates 0:01:18.240 --> 0:01:20.550 have been higher, although we are starting to see them 0:01:20.550 --> 0:01:24.600 come down, but they are fluctuating. We've got inflation that's 0:01:24.600 --> 0:01:27.120 higher and the general cost of living is higher, so 0:01:27.390 --> 0:01:30.209 people are a little bit more risk averse. But the 0:01:30.209 --> 0:01:32.819 good news is affordability is on the up, so lenders 0:01:32.819 --> 0:01:37.140 are lending more than they previously did. The mortgage stress 0:01:37.140 --> 0:01:40.319 rates in the background, they used to really hinder affordability 0:01:40.319 --> 0:01:43.470 for people because they're making sure you can afford the 0:01:43.470 --> 0:01:46.200 mortgage if rates do go up more, but because interest 0:01:46.200 --> 0:01:48.870 rates went up so much, those stress rates were really 0:01:48.870 --> 0:01:52.470 affecting affordability and they've been reduced now, which is brilliant 0:01:52.470 --> 0:01:55.620 because that means affordability is a lot better. So there's 0:01:55.620 --> 0:01:59.490 some really positive news. The house prices haven't escalated too 0:01:59.490 --> 0:02:02.520 quickly. You've obviously got world news, it affects the market 0:02:02.520 --> 0:02:05.670 as well, but generally things are a lot more positive. 0:02:05.850 --> 0:02:08.070 The Bank of England base rate's come down quite a 0:02:08.070 --> 0:02:08.639 few times. 0:02:08.639 --> 0:02:11.010 And it's not just about the mortgage, is it? There 0:02:11.010 --> 0:02:13.740 are a whole set of other costs that people need 0:02:13.740 --> 0:02:15.209 to consider when they're buying property. 0:02:15.419 --> 0:02:18.540 Absolutely, and if you're a first time buyer, I think 0:02:18.540 --> 0:02:21.270 we always just think about the deposit, but you do 0:02:21.270 --> 0:02:24.000 have to think about the other fees. So I did 0:02:24.000 --> 0:02:27.388 get an example of a 400, 000 pound house with a 10% 0:02:27.389 --> 0:02:29.700 deposit, just to give you a bit of a flavor 0:02:29.730 --> 0:02:31.889 of the different categories because when you first sit with 0:02:31.889 --> 0:02:33.870 someone, you go, " Okay, how much deposit have you got? 0:02:34.169 --> 0:02:37.169 Okay, have you got stamp duty?" And for a 400,000 0:02:37.169 --> 0:02:40.440 pound house that's 10, 000 pounds. And then you need solicitor 0:02:40.440 --> 0:02:43.110 fees to make sure that they can do the transaction 0:02:43.110 --> 0:02:45.960 for you. That can be $ 1500 to a couple of 0:02:45.960 --> 0:02:49.709 grand, depends how complicated it is. You've then got removal 0:02:49.710 --> 0:02:52.110 costs if you want help. Lots of people say, " I 0:02:52.110 --> 0:02:54.179 can do it myself," it's fine, but you'll still probably 0:02:54.180 --> 0:02:56.430 need a van of some sort. So you need to 0:02:56.430 --> 0:02:58.919 factor that in. And if you're buying a house, we 0:02:59.250 --> 0:03:03.360 recommend a homebuyers valuation. You can get a normal valuation, 0:03:03.630 --> 0:03:06.300 but you're looking at 350 pounds or you might be 0:03:06.300 --> 0:03:08.490 lucky and get one free with your mortgage. But a homebuyer's 0:03:09.030 --> 0:03:11.730 valuation is really good because it shows you what money 0:03:11.730 --> 0:03:13.440 you're going to need to spend on that property in 0:03:13.440 --> 0:03:16.080 the next few years. Of course, a mortgage advisor could 0:03:16.080 --> 0:03:18.690 cost you money and fees and generally with a mortgage 0:03:18.690 --> 0:03:21.270 you'll have an arrangement fee. So going back to this 0:03:21.270 --> 0:03:25.169 example of a 400,000 pound property, yes you need a 10% 0:03:25.169 --> 0:03:27.960 deposit, which is 40, 000, but you've probably got to factor 0:03:27.960 --> 0:03:31.710 in this scenario about 15, 000 in fees, maybe a bit 0:03:31.710 --> 0:03:34.650 less, maybe a tiny bit more, just depending on the 0:03:34.650 --> 0:03:37.770 different things you select on that process. That gives you 0:03:37.770 --> 0:03:41.010 an idea as to the cost of moving as well 0:03:41.040 --> 0:03:42.570 that you just need to factor in. 0:03:42.720 --> 0:03:45.150 And that's just before you've stepped foot in the property 0:03:45.840 --> 0:03:47.250 and have to think about renovating it. 0:03:47.280 --> 0:03:48.270 Yeah, exactly. 0:03:48.270 --> 0:03:51.420 So we've talked about how you navigate this. If you are a 0:03:51.420 --> 0:03:54.375 first time buyer, what if you already own a property 0:03:54.375 --> 0:03:56.280 and you're looking to move? What are all the different 0:03:56.280 --> 0:03:57.360 steps of the journey then? 0:03:57.630 --> 0:04:01.500 Number one is looking at your current mortgage. So you 0:04:01.500 --> 0:04:04.320 might have a fixed rate that you are in and that you 0:04:04.320 --> 0:04:07.140 might even be tied into that for longer than you 0:04:07.140 --> 0:04:09.180 want to be when it comes to moving. So the 0:04:09.180 --> 0:04:11.280 first thing I want people to know is that you 0:04:11.280 --> 0:04:14.790 can potentially port your mortgage and that will avoid you 0:04:14.790 --> 0:04:18.390 paying an early repayment charge. But the limitation of that 0:04:18.390 --> 0:04:20.969 is that you are with that lender if you've got 0:04:20.970 --> 0:04:24.719 a fixed rate usually, and you have said to that lender, " 0:04:24.779 --> 0:04:26.849 Effectively, I'm going to keep this for two years or 0:04:26.850 --> 0:04:29.190 five years," and you'll see in your mortgage offer that 0:04:29.190 --> 0:04:31.710 if you do end that early, they will charge you 0:04:31.710 --> 0:04:33.450 something and it can be quite a bit of money. 0:04:33.450 --> 0:04:35.820 So make sure you're looking at that first that you 0:04:35.820 --> 0:04:38.370 know where you stand with your mortgage, and that comes 0:04:38.370 --> 0:04:41.460 into your affordability anyway to look at how much equity 0:04:41.460 --> 0:04:43.529 do I have in the property? So you could have 0:04:43.529 --> 0:04:45.060 paid off quite a bit of your mortgage in the 0:04:45.060 --> 0:04:47.580 time you've lived there and the property could have gone 0:04:47.580 --> 0:04:50.669 up in value for example. And then subsequently you've got 0:04:50.670 --> 0:04:53.159 to look at how much your property is worth and 0:04:53.160 --> 0:04:56.279 start getting it valued by estate agents to put it 0:04:56.279 --> 0:04:58.980 on the market and sell it. That's where we come 0:04:58.980 --> 0:05:02.070 into what estate agent should I pick, how do I 0:05:02.070 --> 0:05:05.279 know what it's worth? But when it comes to selling, 0:05:05.730 --> 0:05:08.279 your house is worth what someone's willing to pay for 0:05:08.279 --> 0:05:11.400 it, so rely on your local estate agents because they 0:05:11.400 --> 0:05:16.080 really should be able to show you comparables and tell 0:05:16.080 --> 0:05:18.600 you what they think it will sell for. And so 0:05:18.600 --> 0:05:20.729 when we talk about the cost of moving, you need 0:05:20.730 --> 0:05:24.000 to look at estate agency fees. Now they vary from 0:05:24.210 --> 0:05:27.240 one and a half percent of the property's value. They 0:05:27.240 --> 0:05:29.040 could be more than that, it could be less than that, 0:05:29.040 --> 0:05:31.500 it depends if you can negotiate. And they're going to 0:05:31.500 --> 0:05:33.570 want to know if you're going to go exclusively with 0:05:33.570 --> 0:05:35.880 that agent or with multiple agents. 0:05:35.910 --> 0:05:39.660 You spoke before about the changes that have happened with 0:05:39.720 --> 0:05:44.850 mortgage affordability. And is that because mortgage lenders are coming 0:05:44.850 --> 0:05:48.630 up with new products and want to draw more borrowers in? 0:05:48.660 --> 0:05:51.599 Yeah, I think there's more innovation definitely. So we're seeing 0:05:51.600 --> 0:05:54.630 products like the Helping Hand Mortgage for Nationwide, for example, 0:05:54.870 --> 0:05:58.290 six times your income. We've seen lenders like April Mortgages 0:05:58.290 --> 0:06:01.529 come out with seven times income. Now these are specific 0:06:01.529 --> 0:06:05.279 products. They're still a general rule of 4. 75 times 0:06:05.279 --> 0:06:07.739 your income, but there are lenders out there who are 0:06:07.740 --> 0:06:11.010 really trying to be innovative, whether that is giving you 0:06:11.070 --> 0:06:15.089 an opportunity to have additional boosting on your deposit or 0:06:15.089 --> 0:06:18.750 giving you additional affordability like you say. So it's definitely 0:06:18.750 --> 0:06:20.490 a lot more positive than it was. 0:06:20.640 --> 0:06:23.250 So how do you work out how much someone can borrow? 0:06:23.730 --> 0:06:26.940 So it depends with every single lender how much you 0:06:26.940 --> 0:06:28.560 can borrow, and I really want to make that point 0:06:28.560 --> 0:06:31.950 clear because you might be tempted to go on a 0:06:31.950 --> 0:06:35.610 calculator or AI and ask how much you can borrow. 0:06:35.880 --> 0:06:38.070 But let me tell you, it's completely different for every 0:06:38.070 --> 0:06:40.770 lender. It's not just about the lender that lends the 0:06:40.770 --> 0:06:43.200 most, it's the lender that lends the most to you 0:06:43.620 --> 0:06:47.610 in your specific circumstance. If you pay childcare costs or 0:06:47.610 --> 0:06:49.740 you've got credit cards, but you are clearing them every 0:06:49.740 --> 0:06:52.739 month, you have different ways of the lender looking at 0:06:52.740 --> 0:06:55.320 your credit card balances. Some will ignore them if they're 0:06:55.320 --> 0:06:58.860 going to disappear and some won't. So these are just 0:06:58.950 --> 0:07:03.420 ideas and examples of how different lender underwriters treat each 0:07:03.420 --> 0:07:06.630 client and each case, the good news is that's our 0:07:06.630 --> 0:07:08.969 job. We spend a lot of time in the background 0:07:09.270 --> 0:07:12.540 building relationships with lenders so we can really understand who 0:07:12.540 --> 0:07:13.620 they're trying to market. 0:07:14.040 --> 0:07:17.190 And you touched on the government as well and the 0:07:17.190 --> 0:07:20.910 regulator, the FCA that stands for Financial Conduct Authority and 0:07:20.910 --> 0:07:23.580 they are conducting a review at the moment of the 0:07:23.580 --> 0:07:27.960 mortgage market and talking about bringing back certain products like 0:07:28.320 --> 0:07:32.310 interest only mortgages, mortgages with higher deposits, even a hundred 0:07:32.310 --> 0:07:36.510 percent mortgages. What are your personal views around those kinds 0:07:36.510 --> 0:07:39.330 of solutions for people who might otherwise struggle to get 0:07:39.660 --> 0:07:40.770 funding for their mortgage? 0:07:41.100 --> 0:07:44.310 We've just had the 100% mortgage launched by April Mortgages 0:07:44.310 --> 0:07:46.350 recently, and we were right at the forefront of that. 0:07:46.410 --> 0:07:50.370 And honestly, just in that product alone shows how needed 0:07:50.370 --> 0:07:54.179 is because we had over 2, 000 people contact us 0:07:54.180 --> 0:07:57.000 in the first day of it coming out. Actually a 0:07:57.000 --> 0:07:59.760 lot of them just didn't have the right advice. They 0:07:59.760 --> 0:08:02.940 could actually get a mortgage, they had 5% saved, they 0:08:02.940 --> 0:08:05.520 didn't think that was enough. So they came to us 0:08:05.520 --> 0:08:09.480 because of the 100% mortgage, but perhaps actually they've got a 95% 0:08:09.480 --> 0:08:13.380 mortgage and they got different advice. They still think 20% deposit 0:08:13.380 --> 0:08:16.050 is where it's at and they think they're so far 0:08:16.050 --> 0:08:18.600 away and actually they could be able to move now. 0:08:18.630 --> 0:08:22.380 And that's where advice can be really, really critical. But 0:08:22.380 --> 0:08:25.170 there may be people watching all listening who will think, " 0:08:25.170 --> 0:08:27.450 Well, why can't I just go to my bank and 0:08:27.450 --> 0:08:30.570 ask what they can offer me? Because I already have 0:08:30.570 --> 0:08:32.579 a current account with them or maybe some savings with 0:08:32.580 --> 0:08:34.770 them. Surely they'd be able to help out and surely 0:08:34.770 --> 0:08:37.020 that would be a lot quicker and more straightforward than 0:08:37.020 --> 0:08:39.120 going to a mortgage advisor." What would you say to that? 0:08:39.450 --> 0:08:42.450 They absolutely can. You are very welcome to do that 0:08:42.450 --> 0:08:46.260 and lots of people still do, but just know there's 0:08:46.260 --> 0:08:48.240 a whole world out there that you're not looking at 0:08:48.690 --> 0:08:50.670 and you're not seeing the whole picture. 0:08:50.700 --> 0:08:52.470 You could go to your bank, but the analogy that 0:08:52.470 --> 0:08:54.150 I thought of was that if you go to your 0:08:54.150 --> 0:08:56.160 bank and ask for the mortgage that they would offer 0:08:56.160 --> 0:08:58.260 you, it's like going to a clothes shop that you've 0:08:58.260 --> 0:09:00.990 always gone to in the past and asking them to 0:09:00.990 --> 0:09:03.300 recommend you clothes when there could be a whole load 0:09:03.300 --> 0:09:04.830 of other shops on that high street. 0:09:04.830 --> 0:09:06.960 Yeah, I like that. Good analogy. 0:09:06.960 --> 0:09:09.870 I thought you would. Can you briefly talk us through 0:09:09.870 --> 0:09:14.160 the stages and timings in a typical home buying process, 0:09:14.309 --> 0:09:18.870 so what it means to go from in principle to completion? 0:09:18.900 --> 0:09:21.839 Okay, so should we focus on a first time buyer or a 0:09:21.840 --> 0:09:22.890 home mover? What do you think? 0:09:22.890 --> 0:09:24.600 Let's focus on a first time buyer. 0:09:24.750 --> 0:09:26.969 Okay, so a first time buyer, you're going to speak to 0:09:26.970 --> 0:09:28.530 an advisor, you're going to know how much you can 0:09:28.530 --> 0:09:30.900 borrow, so you're going to feel really confident and they're 0:09:30.900 --> 0:09:33.390 going to give you something called an agreement in principle. 0:09:33.660 --> 0:09:35.640 So that means they've done a credit search with a 0:09:35.640 --> 0:09:37.500 lender that they think is the best lender for you 0:09:37.500 --> 0:09:41.070 in that moment. Hopefully they're doing a soft credit search 0:09:41.070 --> 0:09:43.200 on you so we're not leaving too many footprints on 0:09:43.200 --> 0:09:45.270 your credit file because too many of those is a 0:09:45.270 --> 0:09:48.570 bad thing. And you've got hopefully a certificate or some 0:09:48.570 --> 0:09:51.449 people do these passports now on your Apple Wallet. So 0:09:51.720 --> 0:09:54.990 you've got proof to an estate agent I can borrow 0:09:55.230 --> 0:09:57.929 enough money to look at these properties. And that's the 0:09:57.929 --> 0:10:00.240 best bit because you know what you can afford. You're 0:10:00.240 --> 0:10:03.270 going on Rightmove or Zoopla or other sites looking at 0:10:03.270 --> 0:10:06.390 houses, speaking to estate agents saying, " Tell me what I can 0:10:06.600 --> 0:10:09.240 look at, that's in my price range." And it's your 0:10:09.240 --> 0:10:11.940 job to find the one. And you've got a mix 0:10:11.940 --> 0:10:14.400 of head and heart decisions through the buying process. Head 0:10:14.400 --> 0:10:17.100 is the money, heart is the property. You're going to 0:10:17.100 --> 0:10:19.860 know within 10 seconds apparently when you walk through the 0:10:19.860 --> 0:10:23.730 door and you just feel like, " Oh, oh." And as 0:10:23.730 --> 0:10:26.459 you walk through the property, you'll just start to know, " I 0:10:26.550 --> 0:10:30.030 really like this." And that's a magic feeling. Wait for 0:10:30.030 --> 0:10:32.309 that feeling. It's like love. Don't kind of make it 0:10:32.309 --> 0:10:34.650 fit because you're in a rush, wait for the right 0:10:34.650 --> 0:10:37.800 property. When you do find the one, you will panic 0:10:37.800 --> 0:10:40.559 because you'll love it. And anything that involves the heart, 0:10:40.559 --> 0:10:43.170 you just lose your head and go, " Oh my gosh, 0:10:43.170 --> 0:10:45.240 I've forgotten everything that the advisor told me and I 0:10:45.240 --> 0:10:47.250 don't know what I'm doing." That's why an advisor is 0:10:47.250 --> 0:10:49.740 so important because when you are in this space, that's 0:10:49.740 --> 0:10:52.080 where you'll live for the rest of that transaction, we 0:10:52.080 --> 0:10:54.420 are staying in the head for you. So you're saying, " 0:10:54.420 --> 0:10:56.610 I'm in love with this property. Okay, how much is 0:10:56.610 --> 0:10:59.459 it? Amazing. Okay, yeah, that's fine. We'll get you, there's 0:10:59.460 --> 0:11:01.800 an application in. My estate agent's saying I need a 0:11:01.800 --> 0:11:04.770 server." That's fine. We'll talk you through. We'll instruct that. 0:11:05.040 --> 0:11:07.890 So we'll just try and keep it calm and exciting 0:11:07.890 --> 0:11:10.170 in the background, but we'll be squirreling away to make 0:11:10.170 --> 0:11:12.900 sure all your paperwork sorted. You will then need a 0:11:12.900 --> 0:11:15.600 solicitor. They are as important as your advisor if not 0:11:15.600 --> 0:11:19.110 more so, so really try and find someone that's recommended 0:11:19.440 --> 0:11:21.840 because they can slow down your transaction or speed it 0:11:21.840 --> 0:11:23.849 up and they really need to be good to be 0:11:23.850 --> 0:11:26.580 able to give you everything you need. Not to go 0:11:26.580 --> 0:11:28.559 into the legal process too much because I might bore 0:11:28.559 --> 0:11:30.959 everybody, but they're going to search the property. They're going 0:11:30.960 --> 0:11:33.210 to make sure that everything is as it should be. 0:11:33.630 --> 0:11:36.240 In the meantime, we are getting your mortgage offer. Once 0:11:36.240 --> 0:11:38.670 you get your mortgage offer, our job is technically done, 0:11:38.670 --> 0:11:40.590 but that's not how we work at the Mortgage Mum. 0:11:40.830 --> 0:11:44.220 We will then chase your estate agent, your solicitor, anyone 0:11:44.220 --> 0:11:46.559 else we need to make sure everything's running as it 0:11:46.559 --> 0:11:48.990 should and update you along the way. Make sure you 0:11:48.990 --> 0:11:51.510 have a protection conversation. It's not just about getting your 0:11:51.510 --> 0:11:54.990 mortgage, it's making sure you can keep it. So have 0:11:54.990 --> 0:11:58.439 that while you're excited because it's too easy to just say, " 0:11:58.500 --> 0:12:00.434 Oh yeah, look at that later. I just want to 0:12:00.434 --> 0:12:01.410 get the house first." 0:12:01.410 --> 0:12:03.750 And this is about making sure you insure your income. 0:12:04.320 --> 0:12:08.190 Insured your, income protection, that if anything happens to you, 0:12:08.190 --> 0:12:11.429 that mortgage gets paid off for your family. So think 0:12:11.520 --> 0:12:13.350 about how much you love it and think about the 0:12:13.350 --> 0:12:14.910 fact you don't want to lose it if something out 0:12:14.910 --> 0:12:17.610 of your control happens. And that's a horrible thing to 0:12:17.610 --> 0:12:20.400 talk to an excited buyer about, but it's so important. 0:12:20.790 --> 0:12:23.579 So people will talk to you about exchanging. That means 0:12:23.580 --> 0:12:26.580 the property is yours, everybody signs in your chain, say 0:12:26.580 --> 0:12:29.010 it's yours. And then completion's when you actually put the 0:12:29.010 --> 0:12:31.500 key through the door. I mentioned the word chain and 0:12:31.500 --> 0:12:32.939 I just want to sit on that for a minute 0:12:32.940 --> 0:12:35.429 because if you're a first time buyer, it's not as 0:12:35.429 --> 0:12:38.610 simple as just finding that property and saying, " Yes, I 0:12:38.610 --> 0:12:41.550 want it," because whoever owns that might have to buy 0:12:41.550 --> 0:12:43.740 somewhere else and then that person might have to buy 0:12:43.740 --> 0:12:47.220 somewhere else and what have you. So ask the estate agent 0:12:47.220 --> 0:12:49.800 what the chain looks like. And if you see something 0:12:49.800 --> 0:12:53.250 that says " NO ONWARD CHAIN" in capitals on Rightmove, the 0:12:53.250 --> 0:12:55.950 reason why is because that's such a positive. It means 0:12:55.950 --> 0:12:58.800 it's just you and the buyer and you are going at your pace. 0:12:59.160 --> 0:13:02.490 So just be mindful. That's kind of the thing that's 0:13:02.490 --> 0:13:05.069 out of your control, so you do have to surrender 0:13:05.070 --> 0:13:07.920 a little bit to the process and just do what 0:13:07.920 --> 0:13:11.100 you can, but the timing will be what it is basically. 0:13:11.160 --> 0:13:14.309 Well, let's talk through the process of selling your current 0:13:14.309 --> 0:13:16.110 home. What do you need to consider? 0:13:16.500 --> 0:13:18.300 Okay, so first you need to know how much you 0:13:18.300 --> 0:13:21.150 can sell it for. I would always recommend you speak 0:13:21.150 --> 0:13:23.550 to three agents, at least I have a rule of three. 0:13:23.580 --> 0:13:24.090 Three? 0:13:24.120 --> 0:13:28.020 Three agents because the first one might be inclined to over- 0:13:28.020 --> 0:13:31.650 hype your price. The second one might be really conservative. 0:13:31.860 --> 0:13:33.750 The third one might be just right, like the three 0:13:33.750 --> 0:13:34.260 little pigs. 0:13:35.580 --> 0:13:36.690 You've got to look for Goldilocks. 0:13:36.690 --> 0:13:39.809 Exactly. The rule of three is really important because it 0:13:39.809 --> 0:13:42.420 gives you an overall picture and take your average from 0:13:42.420 --> 0:13:45.030 that. And really listen to what everybody has to say. We 0:13:45.030 --> 0:13:46.770 all want our property to be worth the most, of 0:13:46.770 --> 0:13:49.679 course we do. But if someone's telling you, " It will sell 0:13:49.679 --> 0:13:51.690 better if you put it up for this<" they are 0:13:51.690 --> 0:13:53.640 a professional in their own right and you should listen 0:13:53.640 --> 0:13:55.800 to them if you get that gut feeling for them 0:13:55.800 --> 0:13:59.160 as well. I have found out about house dressings. So have 0:13:59.160 --> 0:13:59.910 you heard of this? 0:13:59.940 --> 0:14:00.809 House dressing? 0:14:00.840 --> 0:14:03.510 So these are companies who will dress your home to 0:14:03.510 --> 0:14:07.200 sell it. So they will hire furniture, they can decorate 0:14:07.200 --> 0:14:10.230 it. Essentially, imagine a film set, but they're doing it 0:14:10.230 --> 0:14:10.920 for your house. 0:14:10.950 --> 0:14:11.851 Right. It's like a glow up. 0:14:11.851 --> 0:14:15.090 It's a glow up. Yes, they should rename it, that's 0:14:15.090 --> 0:14:17.880 a brilliant idea. And it adds up to 10% to 0:14:17.880 --> 0:14:20.820 your purchase price they say and sells your home three 0:14:20.820 --> 0:14:24.480 times faster. And I really believe this is the psychology 0:14:24.480 --> 0:14:27.780 of the new buyer, especially people that love Pinterest, vision 0:14:27.780 --> 0:14:28.500 boards like me. 0:14:28.530 --> 0:14:31.290 But if you can't afford say, a home dressing company, 0:14:31.440 --> 0:14:32.970 there are simple things you could do yourself. 0:14:32.970 --> 0:14:36.840 Absolutely. I think removing clutter is a big thing. Just 0:14:36.960 --> 0:14:39.600 do a Monica, shove it all in the cupboard, just 0:14:39.600 --> 0:14:42.960 don't open the cupboards on the viewing. And simple things 0:14:42.960 --> 0:14:46.410 like flowers and right now it's quite a new concept, 0:14:46.410 --> 0:14:48.780 but I'm seeing more and more companies pop up and 0:14:49.140 --> 0:14:51.900 I'm seeing more houses on Rightmove have this kind of 0:14:51.900 --> 0:14:52.290 glow up. 0:14:52.380 --> 0:14:55.170 It's all about tapping into the psychology of the buyer, 0:14:55.170 --> 0:14:57.630 isn't it, and really trying to get them to imagine 0:14:57.630 --> 0:14:58.920 themselves living in your property? 0:14:58.950 --> 0:15:01.920 Absolutely. But equally, if you are somebody that can look 0:15:01.920 --> 0:15:05.610 past it, credit to you because having that vision, that 0:15:05.610 --> 0:15:07.980 is a gift. Not everybody has that. And if you 0:15:07.980 --> 0:15:09.720 can see what you can do to a home, that's 0:15:09.720 --> 0:15:10.890 an amazing thing as well. 0:15:10.920 --> 0:15:12.090 Because that's where the bargains are. 0:15:12.120 --> 0:15:12.900 Exactly. 0:15:13.380 --> 0:15:16.080 So, if you are buying your first home with a 0:15:16.080 --> 0:15:21.210 partner, that adds a whole extra layer of complication as 0:15:21.210 --> 0:15:24.030 I've been finding out in recent times. Can you talk 0:15:24.030 --> 0:15:27.060 through what some of the hurdles there are for couples 0:15:27.060 --> 0:15:27.780 that are looking to buy? 0:15:28.140 --> 0:15:30.359 Yes. So if you are a couple and one of 0:15:30.360 --> 0:15:32.310 you as a first time buyer and the other isn't, 0:15:32.640 --> 0:15:35.790 sadly the first time buyer kind of just misses out 0:15:35.880 --> 0:15:38.790 on what they would've had if they were buying without 0:15:38.790 --> 0:15:41.610 that person, which is a compromise. That could have been 0:15:41.610 --> 0:15:44.460 a stamp duty saving, it could be a first time 0:15:44.460 --> 0:15:47.880 buyer only product even from a mortgage company. But I 0:15:47.880 --> 0:15:49.860 want to caveat, it's more likely to be the stamp 0:15:49.860 --> 0:15:52.440 duty that's going to be the disappointment. There are first 0:15:52.440 --> 0:15:54.990 time buyer products, but there are also really great products 0:15:55.020 --> 0:15:58.350 if you have owned property before. So just really mindful 0:15:58.350 --> 0:16:02.220 of that stamp duty conversation. We do see couples where 0:16:02.220 --> 0:16:05.190 you've got other properties as well. So one of you 0:16:05.190 --> 0:16:07.140 might own another property or even both of you might 0:16:07.140 --> 0:16:09.960 own another property. And if you think about the timing 0:16:09.960 --> 0:16:12.090 and the chains that we just spoke about and now 0:16:12.180 --> 0:16:14.820 imagine, well that's got its own chain and that's got 0:16:14.820 --> 0:16:18.360 its own chain. There's lots in there that affects stamp duty 0:16:18.360 --> 0:16:21.420 as well. So if you have a second properties, 5% 0:16:22.260 --> 0:16:26.280 additional stamp duty will be paid. However, if you're selling 0:16:26.280 --> 0:16:29.130 your main residential and you're going to buy another residential, 0:16:29.280 --> 0:16:31.470 but you haven't sold this one yet, so you technically 0:16:31.470 --> 0:16:35.100 have two properties, you've got up to 36 months to 0:16:35.100 --> 0:16:38.760 reclaim that stamp duty back. So it is a timing 0:16:38.760 --> 0:16:41.580 thing, and it really depends on that love that I 0:16:41.580 --> 0:16:43.950 said about earlier that if you really love a property, 0:16:43.950 --> 0:16:46.440 some people will go as far as getting bridging loans 0:16:46.680 --> 0:16:50.550 to make things work because they haven't sold a property 0:16:50.550 --> 0:16:52.950 and they need the money to get the next property 0:16:52.950 --> 0:16:56.010 and they don't want to lose that one. So imagine 0:16:56.010 --> 0:16:58.080 doing that on your own. You've got to have someone 0:16:58.080 --> 0:17:01.109 there that's holding all of those balls for you and 0:17:01.110 --> 0:17:03.420 juggling them in the background so that you can focus 0:17:03.420 --> 0:17:06.480 on the emotional journey that you're on of selling two 0:17:06.480 --> 0:17:09.210 places to buy one. So yeah, it is a bit more 0:17:09.210 --> 0:17:12.960 complicated if you're buying as an established couple I would 0:17:12.960 --> 0:17:14.580 say that have more properties in the background. 0:17:15.660 --> 0:17:19.109 So this has been such an interesting conversation, Sarah, but 0:17:19.109 --> 0:17:22.770 I wonder if you can maybe distill what we've learned 0:17:22.770 --> 0:17:26.550 into three tips for navigating the home buying process. 0:17:27.060 --> 0:17:29.970 So number one, I think create a team. So whether 0:17:29.970 --> 0:17:33.119 that's your advisor, a good friend that you can voice 0:17:33.119 --> 0:17:38.970 note endless thoughts to, a good solicitor, create yourself a squad 0:17:39.090 --> 0:17:40.710 to get yourself a property. 0:17:40.710 --> 0:17:41.340 I was just about to say squad. 0:17:41.340 --> 0:17:43.740 Yeah. So create yourself that squad because it's not just 0:17:43.740 --> 0:17:46.619 your advisor, you need all sorts of people. Number two 0:17:46.650 --> 0:17:51.480 is get your head facts together before you start emotionally 0:17:51.480 --> 0:17:55.109 making decisions, and then once you've got your squad, you 0:17:55.109 --> 0:17:58.230 can then lean into the heart space and really enjoy 0:17:58.230 --> 0:18:01.680 the process. It is stressful and I'll tell you why 0:18:01.680 --> 0:18:03.959 it's stressful because there's so many emotions wrapped in and 0:18:03.960 --> 0:18:06.929 you're out of control and that's not something a human 0:18:06.930 --> 0:18:10.500 really likes. So just try and be patient. Try and 0:18:10.560 --> 0:18:14.430 do the head stuff first. And number three is yeah, 0:18:14.460 --> 0:18:17.160 try and enjoy it because there's certain moments in life, 0:18:17.430 --> 0:18:19.770 if you have children, if you get married, they become 0:18:19.770 --> 0:18:23.820 stories as you age. And your house is huge story 0:18:23.880 --> 0:18:27.420 in your life. And I do believe our properties hold 0:18:27.420 --> 0:18:30.510 us through different periods of our life for a reason. 0:18:30.840 --> 0:18:33.690 So try and immerse yourself in the experience good and bad. 0:18:33.780 --> 0:18:35.280