WEBVTT - Fix, Track or Switch? Your Guide to Remortgaging 0:00:01.590 --> 0:00:04.949 Hello, I'm Iona Bain and welcome to A Little Bit Richer, 0:00:05.070 --> 0:00:07.620 brought to you by Legal & General. Now, if your current 0:00:07.620 --> 0:00:10.080 mortgage deal is coming to an end or you're thinking 0:00:10.080 --> 0:00:13.379 about switching things up, well, you're in luck because today 0:00:13.380 --> 0:00:17.460 we're talking all about remortgaging. If you're worried about affordability, 0:00:17.610 --> 0:00:20.430 thinking of fixing your rate or wondering how your current 0:00:20.430 --> 0:00:24.030 life stage affects your options, we've got you covered. I'm 0:00:24.030 --> 0:00:27.090 thrilled to welcome back friend of the show, Sarah Tucker, 0:00:27.360 --> 0:00:30.750 better known as The Mortgage Mum. As a qualified advisor, 0:00:30.990 --> 0:00:34.620 podcast host and trusted voice in the mortgage space, Sarah 0:00:34.620 --> 0:00:37.830 has helped thousands of people feel more informed and empowered 0:00:38.040 --> 0:00:40.860 about their financial decisions, whether they're buying their first home, 0:00:41.010 --> 0:00:45.720 remortgaging or planning for the future. Sarah, welcome back. It's 0:00:45.720 --> 0:00:46.680 great to have you with us. 0:00:46.800 --> 0:00:49.110 Thank you. Thank you for having me. I'm excited. 0:00:49.470 --> 0:00:54.300 So can you briefly explain what remortgaging is, and why 0:00:54.390 --> 0:00:55.470 and when people do it? 0:00:55.500 --> 0:00:58.650 Mm- hmm. Yes, so remortgaging is simply when you are 0:00:58.650 --> 0:01:02.400 switching your mortgage deals. Gone are the days where you 0:01:02.400 --> 0:01:05.490 get a mortgage for 30 years and you just stay with 0:01:05.490 --> 0:01:08.100 the same bank until the end of your mortgage term. 0:01:08.490 --> 0:01:11.220 You will generally have got a fixed rate or perhaps 0:01:11.220 --> 0:01:14.130 a tracker rate, and that product will have an end 0:01:14.130 --> 0:01:17.369 date, whether that's two years, five years, 10 years. And 0:01:17.370 --> 0:01:19.380 remortgaging is when you're coming up to the end of 0:01:19.380 --> 0:01:21.660 that date, we are going to put you onto a 0:01:21.660 --> 0:01:22.440 new deal. 0:01:22.740 --> 0:01:27.270 And remortgaging has become particularly important in the last few years. 0:01:27.300 --> 0:01:27.899 Yes. 0:01:28.020 --> 0:01:29.069 Can you tell us why? 0:01:29.430 --> 0:01:32.130 Remortgaging has been difficult for a lot of people in the 0:01:32.130 --> 0:01:35.520 last few years. So taking you right back to COVID, 0:01:35.730 --> 0:01:39.360 the interest rates were extremely low. We call them COVID 0:01:39.360 --> 0:01:43.170 cheap rates in the industry, and people fixed those for 0:01:43.170 --> 0:01:47.460 two years or five years. And in 2022, we saw 0:01:47.490 --> 0:01:50.520 a huge increase in the swap rates after Liz Truss 0:01:50.520 --> 0:01:53.700 made an announcement, which is quite infamous in our industry 0:01:53.700 --> 0:01:56.970 now as a pivotal moment where we saw rates increase 0:01:57.000 --> 0:02:00.750 dramatically. They have come down quite a bit since then, 0:02:00.930 --> 0:02:03.330 but they're still a lot higher than they were in 0:02:03.330 --> 0:02:07.830 the COVID cheap times. We are creeping towards our new 0:02:07.830 --> 0:02:10.740 normal in the rate market, and so in terms of 0:02:10.740 --> 0:02:16.079 a remortgage, it's about timing. Some people had incredibly difficult 0:02:16.080 --> 0:02:19.889 timing where the rates were very, very high and they 0:02:19.889 --> 0:02:23.070 were coming off those cheapest rates. But the good news 0:02:23.070 --> 0:02:25.650 is anyone that's looking for a remortgage now, or in 0:02:25.650 --> 0:02:28.380 the next year or two, should not have as much 0:02:28.380 --> 0:02:31.440 of a shock, and may even have a decrease in 0:02:31.440 --> 0:02:34.649 their rate if they're someone that remortgaged two years ago 0:02:34.860 --> 0:02:37.050 when things were very difficult and may be coming off 0:02:37.050 --> 0:02:40.020 of those very high rates onto a slightly better one. 0:02:40.020 --> 0:02:42.869 So we've got all sorts of scenarios on our desks 0:02:42.870 --> 0:02:43.290 at the moment. 0:02:43.320 --> 0:02:46.709 Mm. So if people have already had to do that painful 0:02:46.710 --> 0:02:51.240 remortgage in recent times, there may be slightly better news 0:02:51.240 --> 0:02:52.680 ahead for them. Let's wait and see. 0:02:52.680 --> 0:02:52.770 Yes. 0:02:53.400 --> 0:02:56.490 To fix or not to fix? That is the question. 0:02:56.490 --> 0:03:00.090 I think fixed rate mortgages have become really, really popular, 0:03:00.090 --> 0:03:03.389 but there is an alternative which is to track the base 0:03:03.389 --> 0:03:05.880 rate instead. Can you talk us through the pros and 0:03:05.880 --> 0:03:06.989 cons of each option? 0:03:07.230 --> 0:03:11.100 Absolutely. So the fixed rate market, you're right, has become 0:03:11.100 --> 0:03:14.668 much more popular, and I believe that's because people craving 0:03:14.669 --> 0:03:18.660 control and certainty. So with a fixed rate, you are buying 0:03:18.660 --> 0:03:22.050 a rate for a period of time and you have 0:03:22.050 --> 0:03:25.320 complete certainty as to what you're paying. You know exactly 0:03:25.320 --> 0:03:27.330 where you stand with that rate every month until the 0:03:27.330 --> 0:03:30.330 end of that product. The downside of a fixed rate is 0:03:30.330 --> 0:03:33.270 that there's no flexibility or little flexibility. So if you 0:03:33.270 --> 0:03:35.670 want to move house or you want to sell the 0:03:35.670 --> 0:03:38.070 property, you are going to pay an early repayment charge 0:03:38.130 --> 0:03:40.560 unless you take the mortgage with you. The tracker rate 0:03:40.560 --> 0:03:44.100 environment is becoming more popular now because we're hearing reports 0:03:44.100 --> 0:03:46.920 of the Bank of England base rate reducing. They've reduced 0:03:46.920 --> 0:03:50.010 it a few times already this year, and investors think 0:03:50.010 --> 0:03:53.010 that they will do it more than 2025. So those people 0:03:53.010 --> 0:03:56.400 on a tracker rate immediately benefit because their rate tracks the 0:03:56.400 --> 0:03:58.200 Bank of England base rate. So if it goes up, 0:03:58.200 --> 0:04:00.300 it goes up, and if it comes down, it comes 0:04:00.300 --> 0:04:02.580 down with it. The great thing with the tracker rate is 0:04:02.580 --> 0:04:05.130 it's flexible. So just to put it in perspective for 0:04:05.130 --> 0:04:08.550 myself, I've come up from my remortgage and I thought, " 0:04:08.700 --> 0:04:10.380 I think I'm going to move in the next two 0:04:10.380 --> 0:04:12.540 years. I don't know when, but I think I'm going to." 0:04:13.080 --> 0:04:15.270 So I've done a tracker rate mortgage and I also 0:04:15.270 --> 0:04:18.120 feel confident in the market, so I am happy to 0:04:18.120 --> 0:04:20.460 take that risk, but there are people out there that 0:04:20.460 --> 0:04:23.040 wouldn't be happy to risk the fact that their monthly 0:04:23.040 --> 0:04:25.169 payment could go up as well as down. But for 0:04:25.170 --> 0:04:28.560 me, because of my moving situation, it makes sense. For 0:04:28.560 --> 0:04:31.680 anyone trying to decide to fix or not to fix, 0:04:31.920 --> 0:04:34.469 I would be looking to ask them some questions such 0:04:34.470 --> 0:04:36.870 as, do you think you'll move in the next few 0:04:36.870 --> 0:04:40.470 years? Is there any big changes ahead that perhaps a 0:04:40.470 --> 0:04:43.950 fixed rate might limit you in flexibility- wise? What is 0:04:43.950 --> 0:04:46.920 your attitude to risk? Let's talk about how much room 0:04:46.920 --> 0:04:49.350 you've got, wiggle room, in terms of your monthly payment 0:04:49.740 --> 0:04:51.870 and how you'd feel if the rate went up a 0:04:51.870 --> 0:04:55.170 little bit or down. So it's all about talking to 0:04:55.170 --> 0:04:57.750 people about the life around the mortgage and that's how 0:04:57.750 --> 0:04:59.789 we decide if it's fix or not to fix. 0:04:59.880 --> 0:05:03.360 That's really interesting because a tracker mortgage, it sounds like 0:05:03.360 --> 0:05:06.360 that can potentially help you keep your options open. 0:05:06.420 --> 0:05:06.750 Yes. 0:05:06.750 --> 0:05:09.870 So if you are looking to move or there is 0:05:09.870 --> 0:05:11.970 a change in your situation, that there aren't going to 0:05:11.970 --> 0:05:16.260 be extra fees involved with having to change your mortgage 0:05:16.260 --> 0:05:18.660 as opposed to with a fixed rate mortgage. 0:05:18.810 --> 0:05:21.719 Absolutely. We have to start with you. What's happening in 0:05:21.720 --> 0:05:23.940 your world? Then we look at what's happening in the 0:05:23.940 --> 0:05:24.510 economic world. 0:05:24.511 --> 0:05:26.430 That is always a good idea. 0:05:26.430 --> 0:05:26.520 Yes. 0:05:26.520 --> 0:05:28.020 Start with your own situation. 0:05:28.020 --> 0:05:29.000 Start with you first. 0:05:29.000 --> 0:05:32.520 (inaudible) good idea. How might a change in your 0:05:32.760 --> 0:05:36.089 own situation affect you if you're remortgaging? 0:05:36.510 --> 0:05:39.300 Good question. I think a lot of people have this 0:05:39.300 --> 0:05:41.880 if they've had a change of job or perhaps if you've 0:05:41.880 --> 0:05:44.339 had a baby in the last two years or five 0:05:44.339 --> 0:05:46.770 years, a lot can happen. When you fix a rate, 0:05:46.770 --> 0:05:48.600 it's a really weird feeling because you don't know what's going 0:05:48.600 --> 0:05:50.130 to happen in the next two years or five years, 0:05:50.130 --> 0:05:52.529 but what you are doing is saying, " I will live 0:05:52.529 --> 0:05:55.350 here, and I will pay this mortgage, and I will 0:05:55.350 --> 0:05:57.960 not leave for that period of time." And relationships break 0:05:57.960 --> 0:06:00.765 down, all sorts of things can happen. Well, I'll touch 0:06:00.765 --> 0:06:03.660 on the childcare one, if you have a baby, because 0:06:03.660 --> 0:06:06.720 that's an easy answer. You can still remortgage if you're 0:06:06.720 --> 0:06:09.210 on maternity leave, if you've had a child. If you've 0:06:09.210 --> 0:06:11.549 had a change in income, we're going to obviously look 0:06:11.550 --> 0:06:13.710 at your application fresh and we'll say, " What are you earning 0:06:13.710 --> 0:06:16.200 now? What's your situation now?" We'll look at your mortgage 0:06:16.200 --> 0:06:20.070 affordability and you have two choices always. One is to 0:06:20.070 --> 0:06:22.680 remortgage away from your lender, and the other is to 0:06:22.680 --> 0:06:25.890 stay with your lender and just switch the product. Switching 0:06:25.890 --> 0:06:28.140 your product has a lot less underwriting and a lot 0:06:28.140 --> 0:06:30.900 less of a process. So some people opt for that 0:06:30.900 --> 0:06:33.150 for ease, but it's good to check the rest of 0:06:33.150 --> 0:06:35.219 the market to make sure that you're with the best 0:06:35.220 --> 0:06:38.070 lender. But certainly if you've had a big life change, 0:06:38.100 --> 0:06:40.799 I think it's just reassuring for people to know they 0:06:40.800 --> 0:06:43.500 can stick with their current lender if they don't want 0:06:43.500 --> 0:06:45.690 to go through the underwriting and perhaps feel a bit 0:06:45.690 --> 0:06:49.589 anxious about doing so. Any change in your income obviously 0:06:49.589 --> 0:06:52.589 will affect your ability to pay your mortgage potentially, hopefully 0:06:52.589 --> 0:06:54.750 for the better. For most people it's for the better. 0:06:55.050 --> 0:06:57.960 But I think for people worrying, what we see is 0:06:57.960 --> 0:06:59.940 a lot of people don't ring their bank. They don't 0:06:59.940 --> 0:07:02.820 switch the rate. They go onto what's called a standard 0:07:02.820 --> 0:07:05.490 variable rate. They pay a lot more money and they 0:07:05.490 --> 0:07:08.790 don't talk to us because they're worried. What if I talk 0:07:08.970 --> 0:07:11.160 to an advisor, and then they tell me I can't 0:07:11.160 --> 0:07:13.230 have my mortgage and they take my house away? That 0:07:13.230 --> 0:07:17.190 is not going to happen. So my biggest message is, 0:07:17.580 --> 0:07:19.560 go and speak to... Hopefully the advisor you used in 0:07:19.560 --> 0:07:21.870 the first place is the one to contact you six 0:07:21.870 --> 0:07:24.540 months before your rate ends, and just tell them what's 0:07:24.540 --> 0:07:26.340 going on right now for you, what's happened in the 0:07:26.340 --> 0:07:28.320 last few years and let them guide you through. 0:07:28.500 --> 0:07:31.890 Yeah, because the standard variable rate is not going to be 0:07:31.890 --> 0:07:32.550 a good deal for you. 0:07:32.550 --> 0:07:36.360 It's not. It's the highest option out of the three and 0:07:36.450 --> 0:07:38.400 you can be talking about hundreds of pounds a month 0:07:38.400 --> 0:07:40.590 more. And so many people are on it. 0:07:40.590 --> 0:07:40.800 That's crazy. 0:07:41.220 --> 0:07:45.180 This is what's crazy, 1. 8 million people coming off 0:07:45.180 --> 0:07:47.460 of their fixed rate deals and I'm... There will be 0:07:47.460 --> 0:07:51.180 a huge number that do nothing. And that is a 0:07:51.180 --> 0:07:53.460 mission for us to try and get through to those 0:07:53.460 --> 0:07:55.830 people and say, " Don't do nothing because then you're just 0:07:55.830 --> 0:07:56.851 going to switch onto the variable rate." 0:07:56.851 --> 0:07:59.910 Yeah, because it's crazy, but it's a very, very understandable 0:07:59.970 --> 0:08:02.340 mistake to make whereby you just think, " Hang on a 0:08:02.340 --> 0:08:04.980 second, I've really got no choice but to do this." 0:08:04.980 --> 0:08:06.869 Whereas you're making it clear, no, it doesn't have to 0:08:06.870 --> 0:08:07.350 be like that. 0:08:07.590 --> 0:08:10.290 Yeah, and I think if you just, as somebody that perhaps 0:08:10.290 --> 0:08:12.480 isn't engaged in mortgages, probably- 0:08:12.000 --> 0:08:12.002 (inaudible) . 0:08:12.002 --> 0:08:15.450 ... don't read mortgage information for fun like me, and 0:08:15.450 --> 0:08:18.450 maybe just have heard in the press, mortgage rates have 0:08:18.450 --> 0:08:21.300 gone up and you don't really understand. You might just 0:08:21.300 --> 0:08:23.460 look at your bank statement and go, " Oh, yeah, it's 0:08:23.460 --> 0:08:26.100 nightmare. My mortgage has gone up by 500 pounds. What 0:08:26.100 --> 0:08:29.190 a terrible market we're in," and not realize, that's not 0:08:29.190 --> 0:08:31.680 the norm. Yes, the rates have gone up, but you 0:08:31.680 --> 0:08:34.110 don't just need to sit and let it fall onto your 0:08:34.110 --> 0:08:36.540 rate, and there's no judgment if you do. Just pick 0:08:36.540 --> 0:08:39.390 up the phone, decide today that you're going to change 0:08:39.390 --> 0:08:40.350 that and look into it. 0:08:40.470 --> 0:08:42.780 That's a very good point. Even if you are on 0:08:42.780 --> 0:08:45.420 a standard variable rate, you can end that today. 0:08:45.480 --> 0:08:45.660 Yeah. 0:08:45.660 --> 0:08:46.440 It's not too late. 0:08:46.470 --> 0:08:49.050 Yeah, exactly, and save yourself immediate money, hopefully. 0:08:49.170 --> 0:08:51.960 That's a great shout. How far in advance should people 0:08:51.960 --> 0:08:53.580 be thinking about remortgaging? 0:08:53.610 --> 0:08:55.860 Okay, so it used to be three months before, but 0:08:55.860 --> 0:08:58.980 we now say six months before. And the reason we say 0:08:58.980 --> 0:09:01.530 that is the rate market has moved around quite a 0:09:01.530 --> 0:09:04.050 bit and we are still seeing it move now. So 0:09:04.050 --> 0:09:07.500 there's fluctuation and that's because of things like Trump and 0:09:07.500 --> 0:09:11.490 his tariffs, and world news. All of these things affect 0:09:11.490 --> 0:09:14.250 the confidence in the market and that affects the interest 0:09:14.250 --> 0:09:17.550 rates. So if you look at it six months before, 0:09:17.700 --> 0:09:20.400 the benefit of that is, you know your worst case 0:09:20.400 --> 0:09:23.790 scenario. You know you're sorted. You know it's organized, and 0:09:23.790 --> 0:09:25.860 then it's up to your advisor to just check the 0:09:25.860 --> 0:09:28.709 rate movements for you. And we have great tech in 0:09:28.710 --> 0:09:31.200 the background that does it to help us, that will 0:09:31.380 --> 0:09:34.230 constantly check our pipeline of clients to make sure they've 0:09:34.230 --> 0:09:37.020 got the best rate because the rates are always moving. 0:09:37.260 --> 0:09:39.599 So six months before is going to give you time 0:09:39.600 --> 0:09:41.190 to do that. It does take people a while to 0:09:41.190 --> 0:09:44.550 get their paperwork together. We're busy. We're busy people. Getting 0:09:44.550 --> 0:09:47.130 your payslips and your bank statements together, it's a pain 0:09:47.130 --> 0:09:50.400 for people, but it's well worth doing. It's like that 0:09:50.400 --> 0:09:53.100 annoying job you keep putting off. Once you get started, 0:09:53.130 --> 0:09:56.429 downloading your PDFs, logging into your bank accounts, it's not 0:09:56.670 --> 0:09:59.939 as bad as it seems and you do feel really 0:09:59.940 --> 0:10:02.580 empowered, because I think a remortgage is a really good 0:10:02.580 --> 0:10:06.090 little life review, to be honest. How's it going? How's 0:10:06.090 --> 0:10:08.699 your budgeting going? Have you got any savings? Can we 0:10:08.700 --> 0:10:10.860 shorten the term a bit? Could we pay a little 0:10:10.860 --> 0:10:13.335 bit more off a month? It's a really great time 0:10:13.335 --> 0:10:15.002 to go, "How are we... Yeah, we've (inaudible) property." 0:10:15.002 --> 0:10:15.003 (inaudible) for your finances. 0:10:15.003 --> 0:10:15.004 Exactly. 0:10:15.004 --> 0:10:15.005 Yeah. 0:10:17.580 --> 0:10:20.280 So lean into the process and you'll get something good 0:10:20.280 --> 0:10:20.730 out of it. 0:10:20.790 --> 0:10:23.790 Yeah. Circle that date in your calendar, six months before 0:10:23.790 --> 0:10:27.179 your deal's coming up for renewal. Great tip. Also, are 0:10:27.179 --> 0:10:31.320 people maybe remortgaging so they can improve their home rather 0:10:31.320 --> 0:10:31.800 than move? 0:10:32.460 --> 0:10:34.650 We are seeing this a lot as well. Yes, and 0:10:34.650 --> 0:10:37.350 the reason why I think is the stamp duty increase 0:10:37.650 --> 0:10:41.610 has made a difference in people budgeting for moving and 0:10:41.670 --> 0:10:43.770 being a bit more creative with the space that they 0:10:43.770 --> 0:10:46.140 have. I don't know what it's like in your area, 0:10:46.140 --> 0:10:48.480 but I can't walk down one road without seeing so 0:10:48.480 --> 0:10:51.329 many builders everywhere. I don't know enough about the build 0:10:51.330 --> 0:10:53.520 industry to know if prices have come down. I know 0:10:53.520 --> 0:10:57.150 they went up hugely for people doing extensions, but we 0:10:57.150 --> 0:11:00.900 are seeing a lot more people, yes, remortgaging to improve 0:11:00.900 --> 0:11:03.870 their home or even to consolidate debts. Just being a 0:11:03.870 --> 0:11:07.620 bit more creative with the remortgage process, looking at it 0:11:07.620 --> 0:11:10.650 as a financial review and seeing what opportunities there might 0:11:10.650 --> 0:11:11.820 be in that process. 0:11:12.179 --> 0:11:15.809 Are people still dreaming about being able to pay off 0:11:15.809 --> 0:11:18.960 their mortgage even if for many it's a pipe dream? 0:11:19.410 --> 0:11:22.830 And are some people overpaying their mortgage, say when they 0:11:22.830 --> 0:11:23.851 get a lump sum? 0:11:23.851 --> 0:11:24.241 Yeah. 0:11:24.690 --> 0:11:26.819 And if that's the case, then what are the things 0:11:26.820 --> 0:11:28.559 that people need to be aware of if they are 0:11:28.559 --> 0:11:31.559 still looking to pay down their mortgage as quickly as 0:11:31.559 --> 0:11:31.980 they can? 0:11:32.370 --> 0:11:36.870 There's definitely a rise in creators online who are creatively 0:11:36.900 --> 0:11:39.480 showing people how they're paying off their mortgage, even if 0:11:39.480 --> 0:11:42.300 they're 20 years away. And there is a whole market 0:11:42.300 --> 0:11:45.329 out there who's really interested in that. I think again, 0:11:45.330 --> 0:11:47.400 if you come back to the psychology, people just want 0:11:47.400 --> 0:11:50.699 to feel secure, but not everybody. There is, I would 0:11:50.700 --> 0:11:53.699 say, a complete split between people who are like, " Ugh, 0:11:53.760 --> 0:11:56.040 paying your mortgage off, whatever. It doesn't matter. As long 0:11:56.040 --> 0:11:58.350 as I can afford it, I want to keep growing, 0:11:58.350 --> 0:12:01.290 getting a bigger property or being aspirational." And there are other people that are like, " 0:12:01.770 --> 0:12:03.300 I just want to feel secure. I want to know 0:12:03.300 --> 0:12:05.490 this is mine. I don't want someone to be able 0:12:05.490 --> 0:12:07.800 to take it away from me." For those people, I 0:12:07.800 --> 0:12:10.770 think if you're making overpayments, just make sure you're keeping 0:12:10.770 --> 0:12:13.350 within the realms of possibility for your mortgage. So some 0:12:13.350 --> 0:12:17.309 lenders let you make unlimited overpayments, some don't. Some say, " 0:12:17.309 --> 0:12:20.250 10%, then you'll get charged." How dare you for paying 0:12:20.250 --> 0:12:23.099 off your mortgage? And if you do come into a 0:12:23.100 --> 0:12:25.050 windfall of money and you want to pay off your 0:12:25.050 --> 0:12:28.290 mortgage, your early repayment charge will still apply. So you think, " 0:12:28.290 --> 0:12:30.360 I'll win the lottery. I'll pay my mortgage off." Well, 0:12:30.360 --> 0:12:31.770 you might want to wait until the end of your 0:12:31.770 --> 0:12:33.359 early repayment charge. You might not care. It depends how 0:12:33.360 --> 0:12:36.750 much you win. But it's just a personal decision always. 0:12:37.230 --> 0:12:39.660 Obviously, paying off your mortgage is our job to try 0:12:39.660 --> 0:12:42.300 and get people to do that, work towards that day 0:12:42.300 --> 0:12:46.080 where you're mortgage free, whatever that means for you. But 0:12:46.140 --> 0:12:49.410 speaking really openly, I think there are other ways to 0:12:49.410 --> 0:12:52.260 use your money as well, and I'm not an investor 0:12:52.260 --> 0:12:55.350 and I'm not promoting investment products, but you can invest 0:12:55.410 --> 0:12:57.480 your money in stocks and shares ISA, and that might 0:12:57.480 --> 0:13:01.199 grow better than saving on your mortgage rate. And we're seeing 0:13:01.200 --> 0:13:03.329 a bit more of that as well. Bit more of 0:13:03.330 --> 0:13:07.199 that entrepreneurial mindset when it comes to movement of money, 0:13:07.500 --> 0:13:12.210 buying further properties, thinking about retirement differently. It's not just 0:13:12.210 --> 0:13:14.580 about adding to your pension anymore. People are like, " How 0:13:14.580 --> 0:13:17.340 can I retire differently and what does that need to 0:13:17.340 --> 0:13:21.450 look like?" And of course, pensions are important. I really 0:13:21.450 --> 0:13:25.589 encourage people to really educate themselves in their own scenarios. 0:13:25.590 --> 0:13:27.630 I've done it myself where I say, " I want this 0:13:27.630 --> 0:13:30.570 much month to month when I retire. I'm retiring at 0:13:30.600 --> 0:13:32.130 this age. What would I need to put into my 0:13:32.130 --> 0:13:35.520 pension pot? I'm 40 years old." And it's great because 0:13:35.610 --> 0:13:37.260 it gives you a bit of a frame of reference. 0:13:37.260 --> 0:13:39.870 Obviously a financial advisor will do that even better. So 0:13:40.050 --> 0:13:43.679 it's about thinking about your own personal goals and it's 0:13:43.679 --> 0:13:46.740 all too easy. I was someone that just like, oh, 0:13:46.740 --> 0:13:51.150 yeah, pension, oh, retiring, paying off your mortgage, it's years 0:13:51.150 --> 0:13:53.550 away. It's so many years away, but the years go 0:13:53.550 --> 0:13:57.720 quickly and it's really important to think ahead, and it's 0:13:57.720 --> 0:14:00.270 actually empowering in its own way and exciting in its 0:14:00.270 --> 0:14:00.750 own way. 0:14:00.990 --> 0:14:03.000 And on the flip side, there will be people who 0:14:03.000 --> 0:14:05.610 will not be able to overpay their mortgage. In fact, 0:14:05.610 --> 0:14:09.059 what they'll need to do is extend their mortgage. What 0:14:09.059 --> 0:14:11.610 advice do you give people who might be looking for 0:14:11.610 --> 0:14:14.850 ways to make their mortgage more affordable over the long term? 0:14:15.210 --> 0:14:16.980 You're going to not be surprised to hear that I 0:14:16.980 --> 0:14:21.600 say, definitely speak to somebody because that anxiety can take 0:14:21.600 --> 0:14:23.940 such a hold over you, especially when it comes to 0:14:23.940 --> 0:14:27.479 money. And we've held a lot of people through those 0:14:27.480 --> 0:14:32.130 really horrible conversations of realizing they've got to find X 0:14:32.130 --> 0:14:34.650 amount more a month for a mortgage that they don't 0:14:34.680 --> 0:14:37.020 often think about. They don't get anything extra for that 0:14:37.020 --> 0:14:39.840 money. They're not releasing equity for that money. They're just 0:14:39.840 --> 0:14:43.230 paying more for the same borrowing. For people to just 0:14:43.230 --> 0:14:45.390 lose hundreds of pounds a month, it's not nice. And 0:14:45.390 --> 0:14:48.510 for some people, whilst on paper they can afford it, 0:14:48.810 --> 0:14:51.990 that creates a huge amount of stress and anxiety because 0:14:51.990 --> 0:14:55.050 we all tend to live within our means and we 0:14:55.050 --> 0:14:58.350 get used to the money we have. So our job 0:14:58.350 --> 0:15:01.290 has been and continues to be looking at that monthly 0:15:01.290 --> 0:15:04.650 budget with someone, with a third party perspective and saying, " 0:15:05.070 --> 0:15:08.520 Okay, you've got seven subscriptions. Is there any of those 0:15:08.520 --> 0:15:11.250 we can let go of? Have you reviewed your energy 0:15:11.250 --> 0:15:14.640 bills? Have you spoken to other providers?" Some people, they 0:15:14.640 --> 0:15:16.920 are used to having a car, for example, or a 0:15:16.920 --> 0:15:20.970 second car. And it is challenging to challenge people on 0:15:20.970 --> 0:15:24.720 what their normal is in a really kind but affirmative 0:15:24.720 --> 0:15:28.350 way because ultimately we're just trying to show them that 0:15:28.350 --> 0:15:31.440 there are tweaks that can make, and you can often 0:15:31.440 --> 0:15:35.310 make a percentage change on your budgeting if somebody just 0:15:35.310 --> 0:15:37.590 has a look at it with you and says, " Could 0:15:37.590 --> 0:15:40.320 we do this?" Now, practically, if we've done that and 0:15:40.320 --> 0:15:42.570 we've exhausted all the options there, and you're still saying 0:15:42.570 --> 0:15:44.550 to me, " I'm worried about this, I can't do it." 0:15:44.850 --> 0:15:47.010 We can look at your mortgage term and we can 0:15:47.010 --> 0:15:49.859 extend it. So just as people shorten it, people do 0:15:49.860 --> 0:15:52.859 extend it, if they're on maternity leave, or they've got 0:15:52.860 --> 0:15:56.280 reduced income, or they've been poorly, or just simply that 0:15:56.280 --> 0:15:59.190 they don't feel comfortable with the new rate. As long as 0:15:59.190 --> 0:16:01.890 we're talking about, okay, well, by adding that time on 0:16:01.890 --> 0:16:04.170 you're going to pay more over the long run, and 0:16:04.170 --> 0:16:06.870 we've explained all of that, it's our job to keep 0:16:06.870 --> 0:16:09.480 reviewing that. The idea is that, again, in five years, 0:16:09.480 --> 0:16:11.970 maybe when the children are older or they're in a 0:16:11.970 --> 0:16:14.760 different position, we can reduce the term again. So it's 0:16:14.760 --> 0:16:17.430 our job to really flex and bend with our clients. 0:16:17.730 --> 0:16:20.250 Yeah, I would say if you are someone, and probably 0:16:20.250 --> 0:16:23.370 you're in the majority, less people worrying about how can 0:16:23.370 --> 0:16:25.290 I pay my mortgage off, more people are worrying about 0:16:25.290 --> 0:16:28.320 the interest rates increasing, then just make sure you're getting 0:16:28.320 --> 0:16:29.100 the right advice. 0:16:29.100 --> 0:16:31.680 Yeah. So make sure you get yourself a new deal 0:16:31.680 --> 0:16:32.400 that works for you. 0:16:32.490 --> 0:16:33.180 Absolutely. 0:16:33.480 --> 0:16:38.730 So finally, Sarah, have you got three top tips for 0:16:38.730 --> 0:16:41.430 folks who are locking in a new mortgage deal? 0:16:41.790 --> 0:16:45.180 Leave yourself plenty of time. Speak to someone six months 0:16:45.180 --> 0:16:47.820 before, as I've said all the way through. So leave 0:16:47.820 --> 0:16:50.250 yourself plenty of time because it is another admin task 0:16:50.310 --> 0:16:52.560 and I want you to think into it. So the 0:16:52.560 --> 0:16:55.440 more time you have to do that, the better. Be open- 0:16:55.440 --> 0:16:58.410 minded about solutions that you might not have thought of 0:16:58.410 --> 0:17:01.140 or little tweaks to your monthly budgeting that might really 0:17:01.140 --> 0:17:05.520 help. And as always, use an advisor. Use someone that 0:17:05.520 --> 0:17:08.280 you trust to have an open conversation with, and if 0:17:08.280 --> 0:17:11.220 you are worried about something, say it. It is just as 0:17:11.220 --> 0:17:14.730 much an emotional advice service as anything else. So just 0:17:14.730 --> 0:17:16.740 make sure you feel comfortable enough to say that to 0:17:16.740 --> 0:17:20.010 the person that's dealing with your remortgage. And the other 0:17:20.010 --> 0:17:22.470 tip, I would say, is don't just go to your 0:17:22.470 --> 0:17:25.950 bank or building society. Don't be tempted to just switch 0:17:25.950 --> 0:17:28.320 your rate. Look at what else is on the market 0:17:28.320 --> 0:17:31.050 because you might be surprised at how different it could be. 0:17:31.080 --> 0:17:31.949 Play the field. Why not? 0:17:31.950 --> 0:17:32.550 Yeah, play the field. 0:17:34.380 --> 0:17:35.040 Thank you so much. 0:17:35.040 --> 0:17:35.460 Thank you. 0:17:36.300 --> 0:17:39.240 Sarah, it's just really great to know that we've got 0:17:39.240 --> 0:17:42.119 so many options at our fingertips. So thank you for 0:17:42.119 --> 0:17:44.429 guiding us through all that. I would love it if 0:17:44.430 --> 0:17:46.890 you could follow the podcast, leave us a review and 0:17:46.890 --> 0:17:49.950 help others get a little bit richer too. This podcast 0:17:49.950 --> 0:17:51.960 is brought to you by L& G. You can keep 0:17:51.960 --> 0:17:57.119 up with the show on YouTube, TikTok and Instagram, @ legalandgeneral. Until next time, happy 0:17:57.119 --> 0:17:58.770 house hunting and see you soon.