October 2, 2025 • 18 mins
Is your mortgage deal coming to an end soon? Or maybe you’re not tied in and could check if there’s something better out there?
Hopefully this episode will help save you some money. Our host Iona Bain is joined by friend of the show Sarah Tucker, aka The Mortgage Mum, to demystify the world of remortgaging.
Together, they unpack what remortgaging really means, why it matters more than ever in today’s market, and the pros and cons of fixing versus tracking your rate. You’ll hear how life changes like moving home, starting a family, or changing jobs can shape your options, and get practical tips on the costly mistakes and how to avoid them.
Whether you’re looking for certainty, flexibility, or simply the best deal, this episode will give you the tools to feel more informed, confident, and in control of your mortgage decisions.
You can watch episodes on L&G’s YouTube channel
And see behind the scenes content on TikTok and Instagram
You can play the podcast and find other useful content on L&G’s website:
https://www.legalandgeneral.com/podcasts/a-little-bit-richer
Follow The Mortgage Mum on Instagram
Iona and her guests share their own personal thoughts and opinions in this podcast. These might be different from L&G’s take on things. They give financial guidance for a UK audience that’s relevant at the time of recording. It’s general best practice, not the kind of personalised advice you’d get from a financial adviser.
See omnystudio.com/listener for privacy information.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Iona Bain (00:01):
Hello, I'm Iona Bain and welcome to A Little Bit Richer,
brought to you by Legal & General. Now, if your current
mortgage deal is coming to an end or you're thinking
about switching things up, well, you're in luck because today
we're talking all about remortgaging. If you're worried about affordability,
thinking of fixing your rate or wondering how your current
life stage affects your options, we've got you covered. I'm
(00:24):
thrilled to welcome back friend of the show, Sarah Tucker,
better known as The Mortgage Mum. As a qualified advisor,
podcast host and trusted voice in the mortgage space, Sarah
has helped thousands of people feel more informed and empowered
about their financial decisions, whether they're buying their first home,
remortgaging or planning for the future. Sarah, welcome back. It's
(00:45):
great to have you with us.
Sarah Tucker (00:46):
Thank you. Thank you for having me. I'm excited.
Iona Bain (00:49):
So can you briefly explain what remortgaging is, and why
and when people do it?
Sarah Tucker (00:55):
Mm- hmm. Yes, so remortgaging is simply when you are
switching your mortgage deals. Gone are the days where you
get a mortgage for 30 years and you just stay with
the same bank until the end of your mortgage term.
You will generally have got a fixed rate or perhaps
a tracker rate, and that product will have an end
date, whether that's two years, five years, 10 years. And
(01:17):
remortgaging is when you're coming up to the end of
that date, we are going to put you onto a
new deal.
Iona Bain (01:22):
And remortgaging has become particularly important in the last few years.
Sarah Tucker (01:27):
Yes.
Iona Bain (01:28):
Can you tell us why?
Sarah Tucker (01:29):
Remortgaging has been difficult for a lot of people in the
last few years. So taking you right back to COVID,
the interest rates were extremely low. We call them COVID
cheap rates in the industry, and people fixed those for
two years or five years. And in 2022, we saw
a huge increase in the swap rates after Liz Truss
(01:50):
made an announcement, which is quite infamous in our industry
now as a pivotal moment where we saw rates increase
dramatically. They have come down quite a bit since then,
but they're still a lot higher than they were in
the COVID cheap times. We are creeping towards our new
normal in the rate market, and so in terms of
(02:10):
a remortgage, it's about timing. Some people had incredibly difficult
timing where the rates were very, very high and they
were coming off those cheapest rates. But the good news
is anyone that's looking for a remortgage now, or in
the next year or two, should not have as much
of a shock, and may even have a decrease in
(02:31):
their rate if they're someone that remortgaged two years ago
when things were very difficult and may be coming off
of those very high rates onto a slightly better one.
So we've got all sorts of scenarios on our desks
at the moment.
Iona Bain (02:43):
Mm. So if people have already had to do that painful
remortgage in recent times, there may be slightly better news
ahead for them. Let's wait and see.
Sarah Tucker (02:52):
Yes.
Iona Bain (02:53):
To fix or not to fix? That is the question.
I think fixed rate mortgages have become really, really popular,
but there is an alternative which is to track the base
rate instead. Can you talk us through the pros and
cons of each option?
Sarah Tucker (03:07):
Absolutely. So the fixed rate market, you're right, has become
much more popular, and I believe that's because people craving
control and certainty. So with a fixed rate, you are buying
a rate for a period of time and you have
complete certainty as to what you're paying. You know exactly
where you stand with that rate every month until the
(03:27):
end of that product. The downside of a fixed rate is
that there's no flexibility or little flexibility. So if you
want to move house or you want to sell the
property, you are going to pay an early repayment charge
unless you take the mortgage with you. The tracker rate
environment is becoming more popular now because we're hearing reports
of the Bank of England base rate reducing. They've reduced
it a few times already this year, and investors think
(03:50):
that they will do it more than 2025. So those people
on a tracker rate immediately benefit because their rate tracks the
Bank of England base rate. So if it goes up,
it goes up, and if it comes down, it comes
down with it. The great thing with the tracker rate is
it's flexible. So just to put it in perspective for
myself, I've come up from my remortgage and I thought, "
I think I'm going to move in the next two
(04:10):
years. I don't know when, but I think I'm going to."
So I've done a tracker rate mortgage and I also
feel confident in the market, so I am happy to
take that risk, but there are people out there that
wouldn't be happy to risk the fact that their monthly
payment could go up as well as down. But for
me, because of my moving situation, it makes sense. For
anyone trying to decide to fix or not to fix,
(04:31):
I would be looking to ask them some questions such
as, do you think you'll move in the next few
years? Is there any big changes ahead that perhaps a
fixed rate might limit you in flexibility- wise? What is
your attitude to risk? Let's talk about how much room
you've got, wiggle room, in terms of your monthly payment
and how you'd feel if the rate went up a
little bit or down. So it's all about talking to
(04:55):
people about the life around the mortgage and that's how
we decide if it's fix or not to fix.
Iona Bain (04:59):
That's really interesting because a tracker mortgage, it sounds like
that can potentially help you keep your options open.
Sarah Tucker (05:06):
Yes.
Iona Bain (05:06):
So if you are looking to move or there is
a change in your situation, that there aren't going to
be extra fees involved with having to change your mortgage
as opposed to with a fixed rate mortgage.
Sarah Tucker (05:18):
Absolutely. We have to start with you. What's happening in
your world? Then we look at what's happening in the
economic world.
Iona Bain (05:24):
That is always a good idea.
Sarah Tucker (05:26):
Yes.
Iona Bain (05:26):
Start with your own situation.
Sarah Tucker (05:28):
Start with you first.
Iona Bain (05:29):
(inaudible) good idea. How might a change in your
own situation affect you if you're remortgaging?
Sarah Tucker (05:36):
Good question. I think a lot of people have this
if they've had a change of job or perhaps if you've
had a baby in the last two years or five
years, a lot can happen. When you fix a rate,
it's a really weird feeling because you don't know what's going
to happen in the next two years or five years,
but what you are doing is saying, " I will live
here, and I will pay this mortgage, and I will
not leave for that period of time." And relationships break
(05:57):
down, all sorts of things can happen. Well, I'll touch
on the childcare one, if you have a baby, because
that's an easy answer. You can still remortgage if you're
on maternity leave, if you've had a child. If you've
had a change in income, we're going to obviously look
at your application fresh and we'll say, " What are you earning
now? What's your situation now?" We'll look at your mortgage
affordability and you have two choices always. One is to
(06:20):
remortgage away from your lender, and the other is to
stay with your lender and just switch the product. Switching
your product has a lot less underwriting and a lot
less of a process. So some people opt for that
for ease, but it's good to check the rest of
the market to make sure that you're with the best
lender. But certainly if you've had a big life change,
I think it's just reassuring for people to know they
(06:40):
can stick with their current lender if they don't want
to go through the underwriting and perhaps feel a bit
anxious about doing so. Any change in your income obviously
will affect your ability to pay your mortgage potentially, hopefully
for the better. For most people it's for the better.
But I think for people worrying, what we see is
a lot of people don't ring their bank. They don't
switch the rate. They go onto what's called a standard
(07:02):
variable rate. They pay a lot more money and they
don't talk to us because they're worried. What if I talk
to an advisor, and then they tell me I can't
have my mortgage and they take my house away? That
is not going to happen. So my biggest message is,
go and speak to... Hopefully the advisor you used in
the first place is the one to contact you six
months before your rate ends, and just tell them what's
(07:24):
going on right now for you, what's happened in the
last few years and let them guide you through.
Iona Bain (07:28):
Yeah, because the standard variable rate is not going to be
a good deal for you.
Sarah Tucker (07:32):
It's not. It's the highest option out of the three and
you can be talking about hundreds of pounds a month
more. And so many people are on it.
Iona Bain (07:40):
That's crazy.
Sarah Tucker (07:41):
This is what's crazy, 1. 8 million people coming off
of their fixed rate deals and I'm... There will be
a huge number that do nothing. And that is a
mission for us to try and get through to those
people and say, " Don't do nothing because then you're just
going to switch onto the variable rate."
Iona Bain (07:56):
Yeah, because it's crazy, but it's a very, very understandable
mistake to make whereby you just think, " Hang on a
second, I've really got no choice but to do this."
Whereas you're making it clear, no, it doesn't have to
be like that.
Sarah Tucker (08:07):
Yeah, and I think if you just, as somebody that perhaps
isn't engaged in mortgages, probably-
Iona Bain (08:12):
(inaudible) .
Sarah Tucker (08:12):
... don't read mortgage information for fun like me, and
maybe just have heard in the press, mortgage rates have
gone up and you don't really understand. You might just
look at your bank statement and go, " Oh, yeah, it's
nightmare. My mortgage has gone up by 500 pounds. What
a terrible market we're in," and not realize, that's not
the norm. Yes, the rates have gone up, but you
don't just need to sit and let it fall onto your
(08:34):
rate, and there's no judgment if you do. Just pick
up the phone, decide today that you're going to change
that and look into it.
Iona Bain (08:40):
That's a very good point. Even if you are on
a standard variable rate, you can end that today.
Sarah Tucker (08:45):
Yeah.
Iona Bain (08:45):
It's not too late.
Sarah Tucker (08:46):
Yeah, exactly, and save yourself immediate money, hopefully.
Iona Bain (08:49):
That's a great shout. How far in advance should people
be thinking about remortgaging?
Sarah Tucker (08:53):
Okay, so it used to be three months before, but
we now say six months before. And the reason we say
that is the rate market has moved around quite a
bit and we are still seeing it move now. So
there's fluctuation and that's because of things like Trump and
his tariffs, and world news. All of these things affect
the confidence in the market and that affects the interest
(09:14):
rates. So if you look at it six months before,
the benefit of that is, you know your worst case
scenario. You know you're sorted. You know it's organized, and
then it's up to your advisor to just check the
rate movements for you. And we have great tech in
the background that does it to help us, that will
constantly check our pipeline of clients to make sure they've
got the best rate because the rates are always moving.
(09:37):
So six months before is going to give you time
to do that. It does take people a while to
get their paperwork together. We're busy. We're busy people. Getting
your payslips and your bank statements together, it's a pain
for people, but it's well worth doing. It's like that
annoying job you keep putting off. Once you get started,
downloading your PDFs, logging into your bank accounts, it's not
as bad as it seems and you do feel really
(09:59):
empowered, because I think a remortgage is a really good
little life review, to be honest. How's it going? How's
your budgeting going? Have you got any savings? Can we
shorten the term a bit? Could we pay a little
bit more off a month? It's a really great time
to go, "How are we... Yeah, we've (inaudible) property."
Iona Bain (10:15):
(inaudible) for your finances.
Sarah Tucker (10:15):
Exactly.
Iona Bain (10:15):
Yeah.
Sarah Tucker (10:17):
So lean into the process and you'll get something good
out of it.
Iona Bain (10:20):
Yeah. Circle that date in your calendar, six months before
your deal's coming up for renewal. Great tip. Also, are
people maybe remortgaging so they can improve their home rather
than move?
Sarah Tucker (10:32):
We are seeing this a lot as well. Yes, and
the reason why I think is the stamp duty increase
has made a difference in people budgeting for moving and
being a bit more creative with the space that they
have. I don't know what it's like in your area,
but I can't walk down one road without seeing so
many builders everywhere. I don't know enough about the build
industry to know if prices have come down. I know
(10:53):
they went up hugely for people doing extensions, but we
are seeing a lot more people, yes, remortgaging to improve
their home or even to consolidate debts. Just being a
bit more creative with the remortgage process, looking at it
as a financial review and seeing what opportunities there might
be in that process.
Iona Bain (11:12):
Are people still dreaming about being able to pay off
their mortgage even if for many it's a pipe dream?
And are some people overpaying their mortgage, say when they
get a lump sum?
Sarah Tucker (11:23):
Yeah.
Iona Bain (11:24):
And if that's the case, then what are the things
that people need to be aware of if they are
still looking to pay down their mortgage as quickly as
they can?
Sarah Tucker (11:32):
There's definitely a rise in creators online who are creatively
showing people how they're paying off their mortgage, even if
they're 20 years away. And there is a whole market
out there who's really interested in that. I think again,
if you come back to the psychology, people just want
to feel secure, but not everybody. There is, I would
say, a complete split between people who are like, " Ugh,
(11:53):
paying your mortgage off, whatever. It doesn't matter. As long
as I can afford it, I want to keep growing,
getting a bigger property or being aspirational." And there are other people that are like, "
I just want to feel secure. I want to know
this is mine. I don't want someone to be able
to take it away from me." For those people, I
think if you're making overpayments, just make sure you're keeping
within the realms of possibility for your mortgage. So some
lenders let you make unlimited overpayments, some don't. Some say, "
(12:17):
10%, then you'll get charged." How dare you for paying
off your mortgage? And if you do come into a
windfall of money and you want to pay off your
mortgage, your early repayment charge will still apply. So you think, "
I'll win the lottery. I'll pay my mortgage off." Well,
you might want to wait until the end of your
early repayment charge. You might not care. It depends how
much you win. But it's just a personal decision always.
Obviously, paying off your mortgage is our job to try
(12:39):
and get people to do that, work towards that day
where you're mortgage free, whatever that means for you. But
speaking really openly, I think there are other ways to
use your money as well, and I'm not an investor
and I'm not promoting investment products, but you can invest
your money in stocks and shares ISA, and that might
grow better than saving on your mortgage rate. And we're seeing
(13:01):
a bit more of that as well. Bit more of
that entrepreneurial mindset when it comes to movement of money,
buying further properties, thinking about retirement differently. It's not just
about adding to your pension anymore. People are like, " How
can I retire differently and what does that need to
look like?" And of course, pensions are important. I really
(13:21):
encourage people to really educate themselves in their own scenarios.
I've done it myself where I say, " I want this
much month to month when I retire. I'm retiring at
this age. What would I need to put into my
pension pot? I'm 40 years old." And it's great because
it gives you a bit of a frame of reference.
Obviously a financial advisor will do that even better. So
it's about thinking about your own personal goals and it's
(13:43):
all too easy. I was someone that just like, oh,
yeah, pension, oh, retiring, paying off your mortgage, it's years
away. It's so many years away, but the years go
quickly and it's really important to think ahead, and it's
actually empowering in its own way and exciting in its
own way.
Iona Bain (14:00):
And on the flip side, there will be people who
will not be able to overpay their mortgage. In fact,
what they'll need to do is extend their mortgage. What
advice do you give people who might be looking for
ways to make their mortgage more affordable over the long term?
Sarah Tucker (14:15):
You're going to not be surprised to hear that I
say, definitely speak to somebody because that anxiety can take
such a hold over you, especially when it comes to
money. And we've held a lot of people through those
really horrible conversations of realizing they've got to find X
amount more a month for a mortgage that they don't
often think about. They don't get anything extra for that
(14:37):
money. They're not releasing equity for that money. They're just
paying more for the same borrowing. For people to just
lose hundreds of pounds a month, it's not nice. And
for some people, whilst on paper they can afford it,
that creates a huge amount of stress and anxiety because
we all tend to live within our means and we
get used to the money we have. So our job
(14:58):
has been and continues to be looking at that monthly
budget with someone, with a third party perspective and saying, "
Okay, you've got seven subscriptions. Is there any of those
we can let go of? Have you reviewed your energy
bills? Have you spoken to other providers?" Some people, they
are used to having a car, for example, or a
second car. And it is challenging to challenge people on
(15:20):
what their normal is in a really kind but affirmative
way because ultimately we're just trying to show them that
there are tweaks that can make, and you can often
make a percentage change on your budgeting if somebody just
has a look at it with you and says, " Could
we do this?" Now, practically, if we've done that and
we've exhausted all the options there, and you're still saying
(15:42):
to me, " I'm worried about this, I can't do it."
We can look at your mortgage term and we can
extend it. So just as people shorten it, people do
extend it, if they're on maternity leave, or they've got
reduced income, or they've been poorly, or just simply that
they don't feel comfortable with the new rate. As long as
we're talking about, okay, well, by adding that time on
you're going to pay more over the long run, and
(16:04):
we've explained all of that, it's our job to keep
reviewing that. The idea is that, again, in five years,
maybe when the children are older or they're in a
different position, we can reduce the term again. So it's
our job to really flex and bend with our clients.
Yeah, I would say if you are someone, and probably
you're in the majority, less people worrying about how can
I pay my mortgage off, more people are worrying about
(16:25):
the interest rates increasing, then just make sure you're getting
the right advice.
Iona Bain (16:29):
Yeah. So make sure you get yourself a new deal
that works for you.
Sarah Tucker (16:32):
Absolutely.
Iona Bain (16:33):
So finally, Sarah, have you got three top tips for
folks who are locking in a new mortgage deal?
Sarah Tucker (16:41):
Leave yourself plenty of time. Speak to someone six months
before, as I've said all the way through. So leave
yourself plenty of time because it is another admin task
and I want you to think into it. So the
more time you have to do that, the better. Be open-
minded about solutions that you might not have thought of
or little tweaks to your monthly budgeting that might really
help. And as always, use an advisor. Use someone that
(17:05):
you trust to have an open conversation with, and if
you are worried about something, say it. It is just as
much an emotional advice service as anything else. So just
make sure you feel comfortable enough to say that to
the person that's dealing with your remortgage. And the other
tip, I would say, is don't just go to your
bank or building society. Don't be tempted to just switch
(17:25):
your rate. Look at what else is on the market
because you might be surprised at how different it could be.
Iona Bain (17:31):
Play the field. Why not?
Sarah Tucker (17:31):
Yeah, play the field.
Iona Bain (17:34):
Thank you so much.
Sarah Tucker (17:35):
Thank you.
Iona Bain (17:36):
Sarah, it's just really great to know that we've got
so many options at our fingertips. So thank you for
guiding us through all that. I would love it if
you could follow the podcast, leave us a review and
help others get a little bit richer too. This podcast
is brought to you by L& G. You can keep
up with the show on YouTube, TikTok and Instagram, @ legalandgeneral. Until next time, happy
(17:57):
house hunting and see you soon.
Hello, I'm Iona Bain and welcome to A Little Bit Richer,
brought to you by Legal & General. Now, if your current
mortgage deal is coming to an end or you're thinking
about switching things up, well, you're in luck because today
we're talking all about remortgaging. If you're worried about affordability,
thinking of fixing your rate or wondering how your current
life stage affects your options, we've got you covered. I'm
(00:24):
thrilled to welcome back friend of the show, Sarah Tucker,
better known as The Mortgage Mum. As a qualified advisor,
podcast host and trusted voice in the mortgage space, Sarah
has helped thousands of people feel more informed and empowered
about their financial decisions, whether they're buying their first home,
remortgaging or planning for the future. Sarah, welcome back. It's
(00:45):
great to have you with us.
Sarah Tucker (00:46):
Thank you. Thank you for having me. I'm excited.
Iona Bain (00:49):
So can you briefly explain what remortgaging is, and why
and when people do it?
Sarah Tucker (00:55):
Mm- hmm. Yes, so remortgaging is simply when you are
switching your mortgage deals. Gone are the days where you
get a mortgage for 30 years and you just stay with
the same bank until the end of your mortgage term.
You will generally have got a fixed rate or perhaps
a tracker rate, and that product will have an end
date, whether that's two years, five years, 10 years. And
(01:17):
remortgaging is when you're coming up to the end of
that date, we are going to put you onto a
new deal.
Iona Bain (01:22):
And remortgaging has become particularly important in the last few years.
Sarah Tucker (01:27):
Yes.
Iona Bain (01:28):
Can you tell us why?
Sarah Tucker (01:29):
Remortgaging has been difficult for a lot of people in the
last few years. So taking you right back to COVID,
the interest rates were extremely low. We call them COVID
cheap rates in the industry, and people fixed those for
two years or five years. And in 2022, we saw
a huge increase in the swap rates after Liz Truss
(01:50):
made an announcement, which is quite infamous in our industry
now as a pivotal moment where we saw rates increase
dramatically. They have come down quite a bit since then,
but they're still a lot higher than they were in
the COVID cheap times. We are creeping towards our new
normal in the rate market, and so in terms of
(02:10):
a remortgage, it's about timing. Some people had incredibly difficult
timing where the rates were very, very high and they
were coming off those cheapest rates. But the good news
is anyone that's looking for a remortgage now, or in
the next year or two, should not have as much
of a shock, and may even have a decrease in
(02:31):
their rate if they're someone that remortgaged two years ago
when things were very difficult and may be coming off
of those very high rates onto a slightly better one.
So we've got all sorts of scenarios on our desks
at the moment.
Iona Bain (02:43):
Mm. So if people have already had to do that painful
remortgage in recent times, there may be slightly better news
ahead for them. Let's wait and see.
Sarah Tucker (02:52):
Yes.
Iona Bain (02:53):
To fix or not to fix? That is the question.
I think fixed rate mortgages have become really, really popular,
but there is an alternative which is to track the base
rate instead. Can you talk us through the pros and
cons of each option?
Sarah Tucker (03:07):
Absolutely. So the fixed rate market, you're right, has become
much more popular, and I believe that's because people craving
control and certainty. So with a fixed rate, you are buying
a rate for a period of time and you have
complete certainty as to what you're paying. You know exactly
where you stand with that rate every month until the
(03:27):
end of that product. The downside of a fixed rate is
that there's no flexibility or little flexibility. So if you
want to move house or you want to sell the
property, you are going to pay an early repayment charge
unless you take the mortgage with you. The tracker rate
environment is becoming more popular now because we're hearing reports
of the Bank of England base rate reducing. They've reduced
it a few times already this year, and investors think
(03:50):
that they will do it more than 2025. So those people
on a tracker rate immediately benefit because their rate tracks the
Bank of England base rate. So if it goes up,
it goes up, and if it comes down, it comes
down with it. The great thing with the tracker rate is
it's flexible. So just to put it in perspective for
myself, I've come up from my remortgage and I thought, "
I think I'm going to move in the next two
(04:10):
years. I don't know when, but I think I'm going to."
So I've done a tracker rate mortgage and I also
feel confident in the market, so I am happy to
take that risk, but there are people out there that
wouldn't be happy to risk the fact that their monthly
payment could go up as well as down. But for
me, because of my moving situation, it makes sense. For
anyone trying to decide to fix or not to fix,
(04:31):
I would be looking to ask them some questions such
as, do you think you'll move in the next few
years? Is there any big changes ahead that perhaps a
fixed rate might limit you in flexibility- wise? What is
your attitude to risk? Let's talk about how much room
you've got, wiggle room, in terms of your monthly payment
and how you'd feel if the rate went up a
little bit or down. So it's all about talking to
(04:55):
people about the life around the mortgage and that's how
we decide if it's fix or not to fix.
Iona Bain (04:59):
That's really interesting because a tracker mortgage, it sounds like
that can potentially help you keep your options open.
Sarah Tucker (05:06):
Yes.
Iona Bain (05:06):
So if you are looking to move or there is
a change in your situation, that there aren't going to
be extra fees involved with having to change your mortgage
as opposed to with a fixed rate mortgage.
Sarah Tucker (05:18):
Absolutely. We have to start with you. What's happening in
your world? Then we look at what's happening in the
economic world.
Iona Bain (05:24):
That is always a good idea.
Sarah Tucker (05:26):
Yes.
Iona Bain (05:26):
Start with your own situation.
Sarah Tucker (05:28):
Start with you first.
Iona Bain (05:29):
(inaudible) good idea. How might a change in your
own situation affect you if you're remortgaging?
Sarah Tucker (05:36):
Good question. I think a lot of people have this
if they've had a change of job or perhaps if you've
had a baby in the last two years or five
years, a lot can happen. When you fix a rate,
it's a really weird feeling because you don't know what's going
to happen in the next two years or five years,
but what you are doing is saying, " I will live
here, and I will pay this mortgage, and I will
not leave for that period of time." And relationships break
(05:57):
down, all sorts of things can happen. Well, I'll touch
on the childcare one, if you have a baby, because
that's an easy answer. You can still remortgage if you're
on maternity leave, if you've had a child. If you've
had a change in income, we're going to obviously look
at your application fresh and we'll say, " What are you earning
now? What's your situation now?" We'll look at your mortgage
affordability and you have two choices always. One is to
(06:20):
remortgage away from your lender, and the other is to
stay with your lender and just switch the product. Switching
your product has a lot less underwriting and a lot
less of a process. So some people opt for that
for ease, but it's good to check the rest of
the market to make sure that you're with the best
lender. But certainly if you've had a big life change,
I think it's just reassuring for people to know they
(06:40):
can stick with their current lender if they don't want
to go through the underwriting and perhaps feel a bit
anxious about doing so. Any change in your income obviously
will affect your ability to pay your mortgage potentially, hopefully
for the better. For most people it's for the better.
But I think for people worrying, what we see is
a lot of people don't ring their bank. They don't
switch the rate. They go onto what's called a standard
(07:02):
variable rate. They pay a lot more money and they
don't talk to us because they're worried. What if I talk
to an advisor, and then they tell me I can't
have my mortgage and they take my house away? That
is not going to happen. So my biggest message is,
go and speak to... Hopefully the advisor you used in
the first place is the one to contact you six
months before your rate ends, and just tell them what's
(07:24):
going on right now for you, what's happened in the
last few years and let them guide you through.
Iona Bain (07:28):
Yeah, because the standard variable rate is not going to be
a good deal for you.
Sarah Tucker (07:32):
It's not. It's the highest option out of the three and
you can be talking about hundreds of pounds a month
more. And so many people are on it.
Iona Bain (07:40):
That's crazy.
Sarah Tucker (07:41):
This is what's crazy, 1. 8 million people coming off
of their fixed rate deals and I'm... There will be
a huge number that do nothing. And that is a
mission for us to try and get through to those
people and say, " Don't do nothing because then you're just
going to switch onto the variable rate."
Iona Bain (07:56):
Yeah, because it's crazy, but it's a very, very understandable
mistake to make whereby you just think, " Hang on a
second, I've really got no choice but to do this."
Whereas you're making it clear, no, it doesn't have to
be like that.
Sarah Tucker (08:07):
Yeah, and I think if you just, as somebody that perhaps
isn't engaged in mortgages, probably-
Iona Bain (08:12):
(inaudible) .
Sarah Tucker (08:12):
... don't read mortgage information for fun like me, and
maybe just have heard in the press, mortgage rates have
gone up and you don't really understand. You might just
look at your bank statement and go, " Oh, yeah, it's
nightmare. My mortgage has gone up by 500 pounds. What
a terrible market we're in," and not realize, that's not
the norm. Yes, the rates have gone up, but you
don't just need to sit and let it fall onto your
(08:34):
rate, and there's no judgment if you do. Just pick
up the phone, decide today that you're going to change
that and look into it.
Iona Bain (08:40):
That's a very good point. Even if you are on
a standard variable rate, you can end that today.
Sarah Tucker (08:45):
Yeah.
Iona Bain (08:45):
It's not too late.
Sarah Tucker (08:46):
Yeah, exactly, and save yourself immediate money, hopefully.
Iona Bain (08:49):
That's a great shout. How far in advance should people
be thinking about remortgaging?
Sarah Tucker (08:53):
Okay, so it used to be three months before, but
we now say six months before. And the reason we say
that is the rate market has moved around quite a
bit and we are still seeing it move now. So
there's fluctuation and that's because of things like Trump and
his tariffs, and world news. All of these things affect
the confidence in the market and that affects the interest
(09:14):
rates. So if you look at it six months before,
the benefit of that is, you know your worst case
scenario. You know you're sorted. You know it's organized, and
then it's up to your advisor to just check the
rate movements for you. And we have great tech in
the background that does it to help us, that will
constantly check our pipeline of clients to make sure they've
got the best rate because the rates are always moving.
(09:37):
So six months before is going to give you time
to do that. It does take people a while to
get their paperwork together. We're busy. We're busy people. Getting
your payslips and your bank statements together, it's a pain
for people, but it's well worth doing. It's like that
annoying job you keep putting off. Once you get started,
downloading your PDFs, logging into your bank accounts, it's not
as bad as it seems and you do feel really
(09:59):
empowered, because I think a remortgage is a really good
little life review, to be honest. How's it going? How's
your budgeting going? Have you got any savings? Can we
shorten the term a bit? Could we pay a little
bit more off a month? It's a really great time
to go, "How are we... Yeah, we've (inaudible) property."
Iona Bain (10:15):
(inaudible) for your finances.
Sarah Tucker (10:15):
Exactly.
Iona Bain (10:15):
Yeah.
Sarah Tucker (10:17):
So lean into the process and you'll get something good
out of it.
Iona Bain (10:20):
Yeah. Circle that date in your calendar, six months before
your deal's coming up for renewal. Great tip. Also, are
people maybe remortgaging so they can improve their home rather
than move?
Sarah Tucker (10:32):
We are seeing this a lot as well. Yes, and
the reason why I think is the stamp duty increase
has made a difference in people budgeting for moving and
being a bit more creative with the space that they
have. I don't know what it's like in your area,
but I can't walk down one road without seeing so
many builders everywhere. I don't know enough about the build
industry to know if prices have come down. I know
(10:53):
they went up hugely for people doing extensions, but we
are seeing a lot more people, yes, remortgaging to improve
their home or even to consolidate debts. Just being a
bit more creative with the remortgage process, looking at it
as a financial review and seeing what opportunities there might
be in that process.
Iona Bain (11:12):
Are people still dreaming about being able to pay off
their mortgage even if for many it's a pipe dream?
And are some people overpaying their mortgage, say when they
get a lump sum?
Sarah Tucker (11:23):
Yeah.
Iona Bain (11:24):
And if that's the case, then what are the things
that people need to be aware of if they are
still looking to pay down their mortgage as quickly as
they can?
Sarah Tucker (11:32):
There's definitely a rise in creators online who are creatively
showing people how they're paying off their mortgage, even if
they're 20 years away. And there is a whole market
out there who's really interested in that. I think again,
if you come back to the psychology, people just want
to feel secure, but not everybody. There is, I would
say, a complete split between people who are like, " Ugh,
(11:53):
paying your mortgage off, whatever. It doesn't matter. As long
as I can afford it, I want to keep growing,
getting a bigger property or being aspirational." And there are other people that are like, "
I just want to feel secure. I want to know
this is mine. I don't want someone to be able
to take it away from me." For those people, I
think if you're making overpayments, just make sure you're keeping
within the realms of possibility for your mortgage. So some
lenders let you make unlimited overpayments, some don't. Some say, "
(12:17):
10%, then you'll get charged." How dare you for paying
off your mortgage? And if you do come into a
windfall of money and you want to pay off your
mortgage, your early repayment charge will still apply. So you think, "
I'll win the lottery. I'll pay my mortgage off." Well,
you might want to wait until the end of your
early repayment charge. You might not care. It depends how
much you win. But it's just a personal decision always.
Obviously, paying off your mortgage is our job to try
(12:39):
and get people to do that, work towards that day
where you're mortgage free, whatever that means for you. But
speaking really openly, I think there are other ways to
use your money as well, and I'm not an investor
and I'm not promoting investment products, but you can invest
your money in stocks and shares ISA, and that might
grow better than saving on your mortgage rate. And we're seeing
(13:01):
a bit more of that as well. Bit more of
that entrepreneurial mindset when it comes to movement of money,
buying further properties, thinking about retirement differently. It's not just
about adding to your pension anymore. People are like, " How
can I retire differently and what does that need to
look like?" And of course, pensions are important. I really
(13:21):
encourage people to really educate themselves in their own scenarios.
I've done it myself where I say, " I want this
much month to month when I retire. I'm retiring at
this age. What would I need to put into my
pension pot? I'm 40 years old." And it's great because
it gives you a bit of a frame of reference.
Obviously a financial advisor will do that even better. So
it's about thinking about your own personal goals and it's
(13:43):
all too easy. I was someone that just like, oh,
yeah, pension, oh, retiring, paying off your mortgage, it's years
away. It's so many years away, but the years go
quickly and it's really important to think ahead, and it's
actually empowering in its own way and exciting in its
own way.
Iona Bain (14:00):
And on the flip side, there will be people who
will not be able to overpay their mortgage. In fact,
what they'll need to do is extend their mortgage. What
advice do you give people who might be looking for
ways to make their mortgage more affordable over the long term?
Sarah Tucker (14:15):
You're going to not be surprised to hear that I
say, definitely speak to somebody because that anxiety can take
such a hold over you, especially when it comes to
money. And we've held a lot of people through those
really horrible conversations of realizing they've got to find X
amount more a month for a mortgage that they don't
often think about. They don't get anything extra for that
(14:37):
money. They're not releasing equity for that money. They're just
paying more for the same borrowing. For people to just
lose hundreds of pounds a month, it's not nice. And
for some people, whilst on paper they can afford it,
that creates a huge amount of stress and anxiety because
we all tend to live within our means and we
get used to the money we have. So our job
(14:58):
has been and continues to be looking at that monthly
budget with someone, with a third party perspective and saying, "
Okay, you've got seven subscriptions. Is there any of those
we can let go of? Have you reviewed your energy
bills? Have you spoken to other providers?" Some people, they
are used to having a car, for example, or a
second car. And it is challenging to challenge people on
(15:20):
what their normal is in a really kind but affirmative
way because ultimately we're just trying to show them that
there are tweaks that can make, and you can often
make a percentage change on your budgeting if somebody just
has a look at it with you and says, " Could
we do this?" Now, practically, if we've done that and
we've exhausted all the options there, and you're still saying
(15:42):
to me, " I'm worried about this, I can't do it."
We can look at your mortgage term and we can
extend it. So just as people shorten it, people do
extend it, if they're on maternity leave, or they've got
reduced income, or they've been poorly, or just simply that
they don't feel comfortable with the new rate. As long as
we're talking about, okay, well, by adding that time on
you're going to pay more over the long run, and
(16:04):
we've explained all of that, it's our job to keep
reviewing that. The idea is that, again, in five years,
maybe when the children are older or they're in a
different position, we can reduce the term again. So it's
our job to really flex and bend with our clients.
Yeah, I would say if you are someone, and probably
you're in the majority, less people worrying about how can
I pay my mortgage off, more people are worrying about
(16:25):
the interest rates increasing, then just make sure you're getting
the right advice.
Iona Bain (16:29):
Yeah. So make sure you get yourself a new deal
that works for you.
Sarah Tucker (16:32):
Absolutely.
Iona Bain (16:33):
So finally, Sarah, have you got three top tips for
folks who are locking in a new mortgage deal?
Sarah Tucker (16:41):
Leave yourself plenty of time. Speak to someone six months
before, as I've said all the way through. So leave
yourself plenty of time because it is another admin task
and I want you to think into it. So the
more time you have to do that, the better. Be open-
minded about solutions that you might not have thought of
or little tweaks to your monthly budgeting that might really
help. And as always, use an advisor. Use someone that
(17:05):
you trust to have an open conversation with, and if
you are worried about something, say it. It is just as
much an emotional advice service as anything else. So just
make sure you feel comfortable enough to say that to
the person that's dealing with your remortgage. And the other
tip, I would say, is don't just go to your
bank or building society. Don't be tempted to just switch
(17:25):
your rate. Look at what else is on the market
because you might be surprised at how different it could be.
Iona Bain (17:31):
Play the field. Why not?
Sarah Tucker (17:31):
Yeah, play the field.
Iona Bain (17:34):
Thank you so much.
Sarah Tucker (17:35):
Thank you.
Iona Bain (17:36):
Sarah, it's just really great to know that we've got
so many options at our fingertips. So thank you for
guiding us through all that. I would love it if
you could follow the podcast, leave us a review and
help others get a little bit richer too. This podcast
is brought to you by L& G. You can keep
up with the show on YouTube, TikTok and Instagram, @ legalandgeneral. Until next time, happy
(17:57):
house hunting and see you soon.
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