August 21, 2025 • 19 mins
Buying a home is one of life’s biggest financial and emotional milestones, but it can also feel overwhelming. From deposits and legal fees to mortgage rates and market changes, there’s a lot to consider before you get the keys.
In this episode, our host Iona Bain sits down with Sarah Tucker, mortgage expert and founder and CEO of The Mortgage Mum, to break down the home buying journey step-by-step and what it all might cost.
With recent changes to Stamp Duty and mortgage lending, Sarah shares her expert insights on the housing market. Together they cover the stages, typical costs, common pitfalls and the emotional rollercoaster of a homebuyer’s journey.
Whether you’re a first-time buyer or looking to move, this episode is packed with practical advice and reassurance and your ultimate guide to making calm, confident, informed decisions for your next move.
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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.
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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 whether it's
your first time or you're ready to upgrade your space,
buying a home is one of the biggest financial and
emotional decisions many of us will make. From figuring out
what you can afford and navigating mortgage options to managing
the legal process and understanding recent government changes, it can
(00:23):
all feel a little bit overwhelming. So today we're going
to walk you through this journey with none other than
Sarah Tucker. Sarah is the founder and CEO of the
Mortgage Mum, a national mortgage and protection broker. She's a
qualified mortgage advisor, podcast host, and you'll often see her
as the mortgage expert on our ITV's This Morning, so she
really is the perfect person to make us feel confident
(00:46):
about our next move. Welcome, Sarah.
Sarah Tucker (00:49):
Hello. Thank you for having me.
Iona Bain (00:51):
So if you're thinking about buying somewhere for the first
time or you want to make that next move, what
do you need to think about, especially when it comes
to recent changes that might affect that process? Talk us
through what's been happening in the world of mortgages and
home buying.
Sarah Tucker (01:07):
Well, it's been a lot of change, so there's been
good change and there's been some negative change. So let's
start with the negative because then we can move on
to good news. The negatives is that the interest rates
have been higher, although we are starting to see them
come down, but they are fluctuating. We've got inflation that's
higher and the general cost of living is higher, so
people are a little bit more risk averse. But the
(01:30):
good news is affordability is on the up, so lenders
are lending more than they previously did. The mortgage stress
rates in the background, they used to really hinder affordability
for people because they're making sure you can afford the
mortgage if rates do go up more, but because interest
rates went up so much, those stress rates were really
affecting affordability and they've been reduced now, which is brilliant
(01:52):
because that means affordability is a lot better. So there's
some really positive news. The house prices haven't escalated too
quickly. You've obviously got world news, it affects the market
as well, but generally things are a lot more positive.
The Bank of England base rate's come down quite a
few times.
Iona Bain (02:08):
And it's not just about the mortgage, is it? There
are a whole set of other costs that people need
to consider when they're buying property.
Sarah Tucker (02:15):
Absolutely, and if you're a first time buyer, I think
we always just think about the deposit, but you do
have to think about the other fees. So I did
get an example of a 400, 000 pound house with a 10%
deposit, just to give you a bit of a flavor
of the different categories because when you first sit with
someone, you go, " Okay, how much deposit have you got?
Okay, have you got stamp duty?" And for a 400,000
(02:37):
pound house that's 10, 000 pounds. And then you need solicitor
fees to make sure that they can do the transaction
for you. That can be $ 1500 to a couple of
grand, depends how complicated it is. You've then got removal
costs if you want help. Lots of people say, " I
can do it myself," it's fine, but you'll still probably
need a van of some sort. So you need to
factor that in. And if you're buying a house, we
(02:59):
recommend a homebuyers valuation. You can get a normal valuation,
but you're looking at 350 pounds or you might be
lucky and get one free with your mortgage. But a homebuyer's
valuation is really good because it shows you what money
you're going to need to spend on that property in
the next few years. Of course, a mortgage advisor could
cost you money and fees and generally with a mortgage
you'll have an arrangement fee. So going back to this
(03:21):
example of a 400,000 pound property, yes you need a 10%
deposit, which is 40, 000, but you've probably got to factor
in this scenario about 15, 000 in fees, maybe a bit
less, maybe a tiny bit more, just depending on the
different things you select on that process. That gives you
an idea as to the cost of moving as well
that you just need to factor in.
Iona Bain (03:42):
And that's just before you've stepped foot in the property
and have to think about renovating it.
Sarah Tucker (03:47):
Yeah, exactly.
Iona Bain (03:48):
So we've talked about how you navigate this. If you are a
first time buyer, what if you already own a property
and you're looking to move? What are all the different
steps of the journey then?
Sarah Tucker (03:57):
Number one is looking at your current mortgage. So you
might have a fixed rate that you are in and that you
might even be tied into that for longer than you
want to be when it comes to moving. So the
first thing I want people to know is that you
can potentially port your mortgage and that will avoid you
paying an early repayment charge. But the limitation of that
(04:18):
is that you are with that lender if you've got
a fixed rate usually, and you have said to that lender, "
Effectively, I'm going to keep this for two years or
five years," and you'll see in your mortgage offer that
if you do end that early, they will charge you
something and it can be quite a bit of money.
So make sure you're looking at that first that you
know where you stand with your mortgage, and that comes
into your affordability anyway to look at how much equity
(04:41):
do I have in the property? So you could have
paid off quite a bit of your mortgage in the
time you've lived there and the property could have gone
up in value for example. And then subsequently you've got
to look at how much your property is worth and
start getting it valued by estate agents to put it
on the market and sell it. That's where we come
into what estate agent should I pick, how do I
(05:02):
know what it's worth? But when it comes to selling,
your house is worth what someone's willing to pay for
it, so rely on your local estate agents because they
really should be able to show you comparables and tell
you what they think it will sell for. And so
when we talk about the cost of moving, you need
to look at estate agency fees. Now they vary from
(05:24):
one and a half percent of the property's value. They
could be more than that, it could be less than that,
it depends if you can negotiate. And they're going to
want to know if you're going to go exclusively with
that agent or with multiple agents.
Iona Bain (05:35):
You spoke before about the changes that have happened with
mortgage affordability. And is that because mortgage lenders are coming
up with new products and want to draw more borrowers in?
Sarah Tucker (05:48):
Yeah, I think there's more innovation definitely. So we're seeing
products like the Helping Hand Mortgage for Nationwide, for example,
six times your income. We've seen lenders like April Mortgages
come out with seven times income. Now these are specific
products. They're still a general rule of 4. 75 times
your income, but there are lenders out there who are
really trying to be innovative, whether that is giving you
(06:11):
an opportunity to have additional boosting on your deposit or
giving you additional affordability like you say. So it's definitely
a lot more positive than it was.
Iona Bain (06:20):
So how do you work out how much someone can borrow?
Sarah Tucker (06:23):
So it depends with every single lender how much you
can borrow, and I really want to make that point
clear because you might be tempted to go on a
calculator or AI and ask how much you can borrow.
But let me tell you, it's completely different for every
lender. It's not just about the lender that lends the
most, it's the lender that lends the most to you
in your specific circumstance. If you pay childcare costs or
(06:47):
you've got credit cards, but you are clearing them every
month, you have different ways of the lender looking at
your credit card balances. Some will ignore them if they're
going to disappear and some won't. So these are just
ideas and examples of how different lender underwriters treat each
client and each case, the good news is that's our
job. We spend a lot of time in the background
(07:09):
building relationships with lenders so we can really understand who
they're trying to market.
Iona Bain (07:14):
And you touched on the government as well and the
regulator, the FCA that stands for Financial Conduct Authority and
they are conducting a review at the moment of the
mortgage market and talking about bringing back certain products like
interest only mortgages, mortgages with higher deposits, even a hundred
percent mortgages. What are your personal views around those kinds
(07:36):
of solutions for people who might otherwise struggle to get
funding for their mortgage?
Sarah Tucker (07:41):
We've just had the 100% mortgage launched by April Mortgages
recently, and we were right at the forefront of that.
And honestly, just in that product alone shows how needed
is because we had over 2, 000 people contact us
in the first day of it coming out. Actually a
lot of them just didn't have the right advice. They
could actually get a mortgage, they had 5% saved, they
(08:02):
didn't think that was enough. So they came to us
because of the 100% mortgage, but perhaps actually they've got a 95%
mortgage and they got different advice. They still think 20% deposit
is where it's at and they think they're so far
away and actually they could be able to move now.
Iona Bain (08:18):
And that's where advice can be really, really critical. But
there may be people watching all listening who will think, "
Well, why can't I just go to my bank and
ask what they can offer me? Because I already have
a current account with them or maybe some savings with
them. Surely they'd be able to help out and surely
that would be a lot quicker and more straightforward than
going to a mortgage advisor." What would you say to that?
Sarah Tucker (08:39):
They absolutely can. You are very welcome to do that
and lots of people still do, but just know there's
a whole world out there that you're not looking at
and you're not seeing the whole picture.
Iona Bain (08:50):
You could go to your bank, but the analogy that
I thought of was that if you go to your
bank and ask for the mortgage that they would offer
you, it's like going to a clothes shop that you've
always gone to in the past and asking them to
recommend you clothes when there could be a whole load
of other shops on that high street.
Sarah Tucker (09:04):
Yeah, I like that. Good analogy.
Iona Bain (09:06):
I thought you would. Can you briefly talk us through
the stages and timings in a typical home buying process,
so what it means to go from in principle to completion?
Sarah Tucker (09:18):
Okay, so should we focus on a first time buyer or a
home mover? What do you think?
Iona Bain (09:22):
Let's focus on a first time buyer.
Sarah Tucker (09:24):
Okay, so a first time buyer, you're going to speak to
an advisor, you're going to know how much you can
borrow, so you're going to feel really confident and they're
going to give you something called an agreement in principle.
So that means they've done a credit search with a
lender that they think is the best lender for you
in that moment. Hopefully they're doing a soft credit search
on you so we're not leaving too many footprints on
your credit file because too many of those is a
(09:45):
bad thing. And you've got hopefully a certificate or some
people do these passports now on your Apple Wallet. So
you've got proof to an estate agent I can borrow
enough money to look at these properties. And that's the
best bit because you know what you can afford. You're
going on Rightmove or Zoopla or other sites looking at
houses, speaking to estate agents saying, " Tell me what I can
(10:06):
look at, that's in my price range." And it's your
job to find the one. And you've got a mix
of head and heart decisions through the buying process. Head
is the money, heart is the property. You're going to
know within 10 seconds apparently when you walk through the
door and you just feel like, " Oh, oh." And as
you walk through the property, you'll just start to know, " I
really like this." And that's a magic feeling. Wait for
(10:30):
that feeling. It's like love. Don't kind of make it
fit because you're in a rush, wait for the right
property. When you do find the one, you will panic
because you'll love it. And anything that involves the heart,
you just lose your head and go, " Oh my gosh,
I've forgotten everything that the advisor told me and I
don't know what I'm doing." That's why an advisor is
so important because when you are in this space, that's
where you'll live for the rest of that transaction, we
(10:52):
are staying in the head for you. So you're saying, "
I'm in love with this property. Okay, how much is
it? Amazing. Okay, yeah, that's fine. We'll get you, there's
an application in. My estate agent's saying I need a
server." That's fine. We'll talk you through. We'll instruct that.
So we'll just try and keep it calm and exciting
in the background, but we'll be squirreling away to make
sure all your paperwork sorted. You will then need a
(11:12):
solicitor. They are as important as your advisor if not
more so, so really try and find someone that's recommended
because they can slow down your transaction or speed it
up and they really need to be good to be
able to give you everything you need. Not to go
into the legal process too much because I might bore
everybody, but they're going to search the property. They're going
to make sure that everything is as it should be.
(11:33):
In the meantime, we are getting your mortgage offer. Once
you get your mortgage offer, our job is technically done,
but that's not how we work at the Mortgage Mum.
We will then chase your estate agent, your solicitor, anyone
else we need to make sure everything's running as it
should and update you along the way. Make sure you
have a protection conversation. It's not just about getting your
mortgage, it's making sure you can keep it. So have
(11:54):
that while you're excited because it's too easy to just say, "
Oh yeah, look at that later. I just want to
get the house first."
Iona Bain (12:01):
And this is about making sure you insure your income.
Sarah Tucker (12:04):
Insured your, income protection, that if anything happens to you,
that mortgage gets paid off for your family. So think
about how much you love it and think about the
fact you don't want to lose it if something out
of your control happens. And that's a horrible thing to
talk to an excited buyer about, but it's so important.
So people will talk to you about exchanging. That means
the property is yours, everybody signs in your chain, say
(12:26):
it's yours. And then completion's when you actually put the
key through the door. I mentioned the word chain and
I just want to sit on that for a minute
because if you're a first time buyer, it's not as
simple as just finding that property and saying, " Yes, I
want it," because whoever owns that might have to buy
somewhere else and then that person might have to buy
somewhere else and what have you. So ask the estate agent
(12:47):
what the chain looks like. And if you see something
that says " NO ONWARD CHAIN" in capitals on Rightmove, the
reason why is because that's such a positive. It means
it's just you and the buyer and you are going at your pace.
So just be mindful. That's kind of the thing that's
out of your control, so you do have to surrender
a little bit to the process and just do what
(13:07):
you can, but the timing will be what it is basically.
Iona Bain (13:11):
Well, let's talk through the process of selling your current
home. What do you need to consider?
Sarah Tucker (13:16):
Okay, so first you need to know how much you
can sell it for. I would always recommend you speak
to three agents, at least I have a rule of three.
Iona Bain (13:23):
Three?
Sarah Tucker (13:24):
Three agents because the first one might be inclined to over-
hype your price. The second one might be really conservative.
The third one might be just right, like the three
little pigs.
Iona Bain (13:35):
You've got to look for Goldilocks.
Sarah Tucker (13:36):
Exactly. The rule of three is really important because it
gives you an overall picture and take your average from
that. And really listen to what everybody has to say. We
all want our property to be worth the most, of
course we do. But if someone's telling you, " It will sell
better if you put it up for this<" they are
a professional in their own right and you should listen
to them if you get that gut feeling for them
as well. I have found out about house dressings. So have
(13:59):
you heard of this?
Iona Bain (13:59):
House dressing?
Sarah Tucker (14:00):
So these are companies who will dress your home to
sell it. So they will hire furniture, they can decorate
it. Essentially, imagine a film set, but they're doing it
for your house.
Iona Bain (14:10):
Right. It's like a glow up.
Sarah Tucker (14:11):
It's a glow up. Yes, they should rename it, that's
a brilliant idea. And it adds up to 10% to
your purchase price they say and sells your home three
times faster. And I really believe this is the psychology
of the new buyer, especially people that love Pinterest, vision
boards like me.
Iona Bain (14:28):
But if you can't afford say, a home dressing company,
there are simple things you could do yourself.
Sarah Tucker (14:32):
Absolutely. I think removing clutter is a big thing. Just
do a Monica, shove it all in the cupboard, just
don't open the cupboards on the viewing. And simple things
like flowers and right now it's quite a new concept,
but I'm seeing more and more companies pop up and
I'm seeing more houses on Rightmove have this kind of
glow up.
Iona Bain (14:52):
It's all about tapping into the psychology of the buyer,
isn't it, and really trying to get them to imagine
themselves living in your property?
Sarah Tucker (14:58):
Absolutely. But equally, if you are somebody that can look
past it, credit to you because having that vision, that
is a gift. Not everybody has that. And if you
can see what you can do to a home, that's
an amazing thing as well.
Iona Bain (15:10):
Because that's where the bargains are.
Sarah Tucker (15:12):
Exactly.
Iona Bain (15:13):
So, if you are buying your first home with a
partner, that adds a whole extra layer of complication as
I've been finding out in recent times. Can you talk
through what some of the hurdles there are for couples
that are looking to buy?
Sarah Tucker (15:28):
Yes. So if you are a couple and one of
you as a first time buyer and the other isn't,
sadly the first time buyer kind of just misses out
on what they would've had if they were buying without
that person, which is a compromise. That could have been
a stamp duty saving, it could be a first time
buyer only product even from a mortgage company. But I
want to caveat, it's more likely to be the stamp
(15:49):
duty that's going to be the disappointment. There are first
time buyer products, but there are also really great products
if you have owned property before. So just really mindful
of that stamp duty conversation. We do see couples where
you've got other properties as well. So one of you
might own another property or even both of you might
own another property. And if you think about the timing
(16:09):
and the chains that we just spoke about and now
imagine, well that's got its own chain and that's got
its own chain. There's lots in there that affects stamp duty
as well. So if you have a second properties, 5%
additional stamp duty will be paid. However, if you're selling
your main residential and you're going to buy another residential,
but you haven't sold this one yet, so you technically
(16:31):
have two properties, you've got up to 36 months to
reclaim that stamp duty back. So it is a timing
thing, and it really depends on that love that I
said about earlier that if you really love a property,
some people will go as far as getting bridging loans
to make things work because they haven't sold a property
and they need the money to get the next property
(16:52):
and they don't want to lose that one. So imagine
doing that on your own. You've got to have someone
there that's holding all of those balls for you and
juggling them in the background so that you can focus
on the emotional journey that you're on of selling two
places to buy one. So yeah, it is a bit more
complicated if you're buying as an established couple I would
(17:12):
say that have more properties in the background.
Iona Bain (17:15):
So this has been such an interesting conversation, Sarah, but
I wonder if you can maybe distill what we've learned
into three tips for navigating the home buying process.
Sarah Tucker (17:27):
So number one, I think create a team. So whether
that's your advisor, a good friend that you can voice
note endless thoughts to, a good solicitor, create yourself a squad
to get yourself a property.
Iona Bain (17:40):
I was just about to say squad.
Sarah Tucker (17:41):
Yeah. So create yourself that squad because it's not just
your advisor, you need all sorts of people. Number two
is get your head facts together before you start emotionally
making decisions, and then once you've got your squad, you
can then lean into the heart space and really enjoy
the process. It is stressful and I'll tell you why
(18:01):
it's stressful because there's so many emotions wrapped in and
you're out of control and that's not something a human
really likes. So just try and be patient. Try and
do the head stuff first. And number three is yeah,
try and enjoy it because there's certain moments in life,
if you have children, if you get married, they become
stories as you age. And your house is huge story
(18:23):
in your life. And I do believe our properties hold
us through different periods of our life for a reason.
So try and immerse yourself in the experience good and bad.
Iona Bain (18:33):
Yeah, take the rough with the smooth.
Sarah Tucker (18:35):
Yeah, and trust the process. You will always end up
with the place you're meant to be in.
Iona Bain (18:39):
After going through quite a lot of home buying turmoil
in my life, that's exactly what I needed to hear.
Sarah Tucker (18:44):
Oh, good.
Iona Bain (18:45):
It's going to happen.
Sarah Tucker (18:46):
It's going to happen. And when it does, it would
all make sense. And you'll go, " I'm really glad all
these rubbish things happened because now I'm here." And whatever
that moment is for you, just keep visualizing it because
it will happen.
Iona Bain (18:58):
Brilliant. This is the pep talk that I needed.
Sarah Tucker (19:00):
Good.
Iona Bain (19:01):
Thank you, Sarah. You really helped clarify that home buying
and selling process for us in a way that I'm
sure everyone will find very helpful. Next time, friend of
the show, Claire Barrett will be back to debate property
versus pensions. Should you prioritize getting on the housing ladder
and paying your mortgage or perhaps put off the property
dream to save more into your pension? I'd love it
(19:22):
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 the show on YouTube, TikTok, and Instagram at
Legal & General. Until next time, happy 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 whether it's
your first time or you're ready to upgrade your space,
buying a home is one of the biggest financial and
emotional decisions many of us will make. From figuring out
what you can afford and navigating mortgage options to managing
the legal process and understanding recent government changes, it can
(00:23):
all feel a little bit overwhelming. So today we're going
to walk you through this journey with none other than
Sarah Tucker. Sarah is the founder and CEO of the
Mortgage Mum, a national mortgage and protection broker. She's a
qualified mortgage advisor, podcast host, and you'll often see her
as the mortgage expert on our ITV's This Morning, so she
really is the perfect person to make us feel confident
(00:46):
about our next move. Welcome, Sarah.
Sarah Tucker (00:49):
Hello. Thank you for having me.
Iona Bain (00:51):
So if you're thinking about buying somewhere for the first
time or you want to make that next move, what
do you need to think about, especially when it comes
to recent changes that might affect that process? Talk us
through what's been happening in the world of mortgages and
home buying.
Sarah Tucker (01:07):
Well, it's been a lot of change, so there's been
good change and there's been some negative change. So let's
start with the negative because then we can move on
to good news. The negatives is that the interest rates
have been higher, although we are starting to see them
come down, but they are fluctuating. We've got inflation that's
higher and the general cost of living is higher, so
people are a little bit more risk averse. But the
(01:30):
good news is affordability is on the up, so lenders
are lending more than they previously did. The mortgage stress
rates in the background, they used to really hinder affordability
for people because they're making sure you can afford the
mortgage if rates do go up more, but because interest
rates went up so much, those stress rates were really
affecting affordability and they've been reduced now, which is brilliant
(01:52):
because that means affordability is a lot better. So there's
some really positive news. The house prices haven't escalated too
quickly. You've obviously got world news, it affects the market
as well, but generally things are a lot more positive.
The Bank of England base rate's come down quite a
few times.
Iona Bain (02:08):
And it's not just about the mortgage, is it? There
are a whole set of other costs that people need
to consider when they're buying property.
Sarah Tucker (02:15):
Absolutely, and if you're a first time buyer, I think
we always just think about the deposit, but you do
have to think about the other fees. So I did
get an example of a 400, 000 pound house with a 10%
deposit, just to give you a bit of a flavor
of the different categories because when you first sit with
someone, you go, " Okay, how much deposit have you got?
Okay, have you got stamp duty?" And for a 400,000
(02:37):
pound house that's 10, 000 pounds. And then you need solicitor
fees to make sure that they can do the transaction
for you. That can be $ 1500 to a couple of
grand, depends how complicated it is. You've then got removal
costs if you want help. Lots of people say, " I
can do it myself," it's fine, but you'll still probably
need a van of some sort. So you need to
factor that in. And if you're buying a house, we
(02:59):
recommend a homebuyers valuation. You can get a normal valuation,
but you're looking at 350 pounds or you might be
lucky and get one free with your mortgage. But a homebuyer's
valuation is really good because it shows you what money
you're going to need to spend on that property in
the next few years. Of course, a mortgage advisor could
cost you money and fees and generally with a mortgage
you'll have an arrangement fee. So going back to this
(03:21):
example of a 400,000 pound property, yes you need a 10%
deposit, which is 40, 000, but you've probably got to factor
in this scenario about 15, 000 in fees, maybe a bit
less, maybe a tiny bit more, just depending on the
different things you select on that process. That gives you
an idea as to the cost of moving as well
that you just need to factor in.
Iona Bain (03:42):
And that's just before you've stepped foot in the property
and have to think about renovating it.
Sarah Tucker (03:47):
Yeah, exactly.
Iona Bain (03:48):
So we've talked about how you navigate this. If you are a
first time buyer, what if you already own a property
and you're looking to move? What are all the different
steps of the journey then?
Sarah Tucker (03:57):
Number one is looking at your current mortgage. So you
might have a fixed rate that you are in and that you
might even be tied into that for longer than you
want to be when it comes to moving. So the
first thing I want people to know is that you
can potentially port your mortgage and that will avoid you
paying an early repayment charge. But the limitation of that
(04:18):
is that you are with that lender if you've got
a fixed rate usually, and you have said to that lender, "
Effectively, I'm going to keep this for two years or
five years," and you'll see in your mortgage offer that
if you do end that early, they will charge you
something and it can be quite a bit of money.
So make sure you're looking at that first that you
know where you stand with your mortgage, and that comes
into your affordability anyway to look at how much equity
(04:41):
do I have in the property? So you could have
paid off quite a bit of your mortgage in the
time you've lived there and the property could have gone
up in value for example. And then subsequently you've got
to look at how much your property is worth and
start getting it valued by estate agents to put it
on the market and sell it. That's where we come
into what estate agent should I pick, how do I
(05:02):
know what it's worth? But when it comes to selling,
your house is worth what someone's willing to pay for
it, so rely on your local estate agents because they
really should be able to show you comparables and tell
you what they think it will sell for. And so
when we talk about the cost of moving, you need
to look at estate agency fees. Now they vary from
(05:24):
one and a half percent of the property's value. They
could be more than that, it could be less than that,
it depends if you can negotiate. And they're going to
want to know if you're going to go exclusively with
that agent or with multiple agents.
Iona Bain (05:35):
You spoke before about the changes that have happened with
mortgage affordability. And is that because mortgage lenders are coming
up with new products and want to draw more borrowers in?
Sarah Tucker (05:48):
Yeah, I think there's more innovation definitely. So we're seeing
products like the Helping Hand Mortgage for Nationwide, for example,
six times your income. We've seen lenders like April Mortgages
come out with seven times income. Now these are specific
products. They're still a general rule of 4. 75 times
your income, but there are lenders out there who are
really trying to be innovative, whether that is giving you
(06:11):
an opportunity to have additional boosting on your deposit or
giving you additional affordability like you say. So it's definitely
a lot more positive than it was.
Iona Bain (06:20):
So how do you work out how much someone can borrow?
Sarah Tucker (06:23):
So it depends with every single lender how much you
can borrow, and I really want to make that point
clear because you might be tempted to go on a
calculator or AI and ask how much you can borrow.
But let me tell you, it's completely different for every
lender. It's not just about the lender that lends the
most, it's the lender that lends the most to you
in your specific circumstance. If you pay childcare costs or
(06:47):
you've got credit cards, but you are clearing them every
month, you have different ways of the lender looking at
your credit card balances. Some will ignore them if they're
going to disappear and some won't. So these are just
ideas and examples of how different lender underwriters treat each
client and each case, the good news is that's our
job. We spend a lot of time in the background
(07:09):
building relationships with lenders so we can really understand who
they're trying to market.
Iona Bain (07:14):
And you touched on the government as well and the
regulator, the FCA that stands for Financial Conduct Authority and
they are conducting a review at the moment of the
mortgage market and talking about bringing back certain products like
interest only mortgages, mortgages with higher deposits, even a hundred
percent mortgages. What are your personal views around those kinds
(07:36):
of solutions for people who might otherwise struggle to get
funding for their mortgage?
Sarah Tucker (07:41):
We've just had the 100% mortgage launched by April Mortgages
recently, and we were right at the forefront of that.
And honestly, just in that product alone shows how needed
is because we had over 2, 000 people contact us
in the first day of it coming out. Actually a
lot of them just didn't have the right advice. They
could actually get a mortgage, they had 5% saved, they
(08:02):
didn't think that was enough. So they came to us
because of the 100% mortgage, but perhaps actually they've got a 95%
mortgage and they got different advice. They still think 20% deposit
is where it's at and they think they're so far
away and actually they could be able to move now.
Iona Bain (08:18):
And that's where advice can be really, really critical. But
there may be people watching all listening who will think, "
Well, why can't I just go to my bank and
ask what they can offer me? Because I already have
a current account with them or maybe some savings with
them. Surely they'd be able to help out and surely
that would be a lot quicker and more straightforward than
going to a mortgage advisor." What would you say to that?
Sarah Tucker (08:39):
They absolutely can. You are very welcome to do that
and lots of people still do, but just know there's
a whole world out there that you're not looking at
and you're not seeing the whole picture.
Iona Bain (08:50):
You could go to your bank, but the analogy that
I thought of was that if you go to your
bank and ask for the mortgage that they would offer
you, it's like going to a clothes shop that you've
always gone to in the past and asking them to
recommend you clothes when there could be a whole load
of other shops on that high street.
Sarah Tucker (09:04):
Yeah, I like that. Good analogy.
Iona Bain (09:06):
I thought you would. Can you briefly talk us through
the stages and timings in a typical home buying process,
so what it means to go from in principle to completion?
Sarah Tucker (09:18):
Okay, so should we focus on a first time buyer or a
home mover? What do you think?
Iona Bain (09:22):
Let's focus on a first time buyer.
Sarah Tucker (09:24):
Okay, so a first time buyer, you're going to speak to
an advisor, you're going to know how much you can
borrow, so you're going to feel really confident and they're
going to give you something called an agreement in principle.
So that means they've done a credit search with a
lender that they think is the best lender for you
in that moment. Hopefully they're doing a soft credit search
on you so we're not leaving too many footprints on
your credit file because too many of those is a
(09:45):
bad thing. And you've got hopefully a certificate or some
people do these passports now on your Apple Wallet. So
you've got proof to an estate agent I can borrow
enough money to look at these properties. And that's the
best bit because you know what you can afford. You're
going on Rightmove or Zoopla or other sites looking at
houses, speaking to estate agents saying, " Tell me what I can
(10:06):
look at, that's in my price range." And it's your
job to find the one. And you've got a mix
of head and heart decisions through the buying process. Head
is the money, heart is the property. You're going to
know within 10 seconds apparently when you walk through the
door and you just feel like, " Oh, oh." And as
you walk through the property, you'll just start to know, " I
really like this." And that's a magic feeling. Wait for
(10:30):
that feeling. It's like love. Don't kind of make it
fit because you're in a rush, wait for the right
property. When you do find the one, you will panic
because you'll love it. And anything that involves the heart,
you just lose your head and go, " Oh my gosh,
I've forgotten everything that the advisor told me and I
don't know what I'm doing." That's why an advisor is
so important because when you are in this space, that's
where you'll live for the rest of that transaction, we
(10:52):
are staying in the head for you. So you're saying, "
I'm in love with this property. Okay, how much is
it? Amazing. Okay, yeah, that's fine. We'll get you, there's
an application in. My estate agent's saying I need a
server." That's fine. We'll talk you through. We'll instruct that.
So we'll just try and keep it calm and exciting
in the background, but we'll be squirreling away to make
sure all your paperwork sorted. You will then need a
(11:12):
solicitor. They are as important as your advisor if not
more so, so really try and find someone that's recommended
because they can slow down your transaction or speed it
up and they really need to be good to be
able to give you everything you need. Not to go
into the legal process too much because I might bore
everybody, but they're going to search the property. They're going
to make sure that everything is as it should be.
(11:33):
In the meantime, we are getting your mortgage offer. Once
you get your mortgage offer, our job is technically done,
but that's not how we work at the Mortgage Mum.
We will then chase your estate agent, your solicitor, anyone
else we need to make sure everything's running as it
should and update you along the way. Make sure you
have a protection conversation. It's not just about getting your
mortgage, it's making sure you can keep it. So have
(11:54):
that while you're excited because it's too easy to just say, "
Oh yeah, look at that later. I just want to
get the house first."
Iona Bain (12:01):
And this is about making sure you insure your income.
Sarah Tucker (12:04):
Insured your, income protection, that if anything happens to you,
that mortgage gets paid off for your family. So think
about how much you love it and think about the
fact you don't want to lose it if something out
of your control happens. And that's a horrible thing to
talk to an excited buyer about, but it's so important.
So people will talk to you about exchanging. That means
the property is yours, everybody signs in your chain, say
(12:26):
it's yours. And then completion's when you actually put the
key through the door. I mentioned the word chain and
I just want to sit on that for a minute
because if you're a first time buyer, it's not as
simple as just finding that property and saying, " Yes, I
want it," because whoever owns that might have to buy
somewhere else and then that person might have to buy
somewhere else and what have you. So ask the estate agent
(12:47):
what the chain looks like. And if you see something
that says " NO ONWARD CHAIN" in capitals on Rightmove, the
reason why is because that's such a positive. It means
it's just you and the buyer and you are going at your pace.
So just be mindful. That's kind of the thing that's
out of your control, so you do have to surrender
a little bit to the process and just do what
(13:07):
you can, but the timing will be what it is basically.
Iona Bain (13:11):
Well, let's talk through the process of selling your current
home. What do you need to consider?
Sarah Tucker (13:16):
Okay, so first you need to know how much you
can sell it for. I would always recommend you speak
to three agents, at least I have a rule of three.
Iona Bain (13:23):
Three?
Sarah Tucker (13:24):
Three agents because the first one might be inclined to over-
hype your price. The second one might be really conservative.
The third one might be just right, like the three
little pigs.
Iona Bain (13:35):
You've got to look for Goldilocks.
Sarah Tucker (13:36):
Exactly. The rule of three is really important because it
gives you an overall picture and take your average from
that. And really listen to what everybody has to say. We
all want our property to be worth the most, of
course we do. But if someone's telling you, " It will sell
better if you put it up for this<" they are
a professional in their own right and you should listen
to them if you get that gut feeling for them
as well. I have found out about house dressings. So have
(13:59):
you heard of this?
Iona Bain (13:59):
House dressing?
Sarah Tucker (14:00):
So these are companies who will dress your home to
sell it. So they will hire furniture, they can decorate
it. Essentially, imagine a film set, but they're doing it
for your house.
Iona Bain (14:10):
Right. It's like a glow up.
Sarah Tucker (14:11):
It's a glow up. Yes, they should rename it, that's
a brilliant idea. And it adds up to 10% to
your purchase price they say and sells your home three
times faster. And I really believe this is the psychology
of the new buyer, especially people that love Pinterest, vision
boards like me.
Iona Bain (14:28):
But if you can't afford say, a home dressing company,
there are simple things you could do yourself.
Sarah Tucker (14:32):
Absolutely. I think removing clutter is a big thing. Just
do a Monica, shove it all in the cupboard, just
don't open the cupboards on the viewing. And simple things
like flowers and right now it's quite a new concept,
but I'm seeing more and more companies pop up and
I'm seeing more houses on Rightmove have this kind of
glow up.
Iona Bain (14:52):
It's all about tapping into the psychology of the buyer,
isn't it, and really trying to get them to imagine
themselves living in your property?
Sarah Tucker (14:58):
Absolutely. But equally, if you are somebody that can look
past it, credit to you because having that vision, that
is a gift. Not everybody has that. And if you
can see what you can do to a home, that's
an amazing thing as well.
Iona Bain (15:10):
Because that's where the bargains are.
Sarah Tucker (15:12):
Exactly.
Iona Bain (15:13):
So, if you are buying your first home with a
partner, that adds a whole extra layer of complication as
I've been finding out in recent times. Can you talk
through what some of the hurdles there are for couples
that are looking to buy?
Sarah Tucker (15:28):
Yes. So if you are a couple and one of
you as a first time buyer and the other isn't,
sadly the first time buyer kind of just misses out
on what they would've had if they were buying without
that person, which is a compromise. That could have been
a stamp duty saving, it could be a first time
buyer only product even from a mortgage company. But I
want to caveat, it's more likely to be the stamp
(15:49):
duty that's going to be the disappointment. There are first
time buyer products, but there are also really great products
if you have owned property before. So just really mindful
of that stamp duty conversation. We do see couples where
you've got other properties as well. So one of you
might own another property or even both of you might
own another property. And if you think about the timing
(16:09):
and the chains that we just spoke about and now
imagine, well that's got its own chain and that's got
its own chain. There's lots in there that affects stamp duty
as well. So if you have a second properties, 5%
additional stamp duty will be paid. However, if you're selling
your main residential and you're going to buy another residential,
but you haven't sold this one yet, so you technically
(16:31):
have two properties, you've got up to 36 months to
reclaim that stamp duty back. So it is a timing
thing, and it really depends on that love that I
said about earlier that if you really love a property,
some people will go as far as getting bridging loans
to make things work because they haven't sold a property
and they need the money to get the next property
(16:52):
and they don't want to lose that one. So imagine
doing that on your own. You've got to have someone
there that's holding all of those balls for you and
juggling them in the background so that you can focus
on the emotional journey that you're on of selling two
places to buy one. So yeah, it is a bit more
complicated if you're buying as an established couple I would
(17:12):
say that have more properties in the background.
Iona Bain (17:15):
So this has been such an interesting conversation, Sarah, but
I wonder if you can maybe distill what we've learned
into three tips for navigating the home buying process.
Sarah Tucker (17:27):
So number one, I think create a team. So whether
that's your advisor, a good friend that you can voice
note endless thoughts to, a good solicitor, create yourself a squad
to get yourself a property.
Iona Bain (17:40):
I was just about to say squad.
Sarah Tucker (17:41):
Yeah. So create yourself that squad because it's not just
your advisor, you need all sorts of people. Number two
is get your head facts together before you start emotionally
making decisions, and then once you've got your squad, you
can then lean into the heart space and really enjoy
the process. It is stressful and I'll tell you why
(18:01):
it's stressful because there's so many emotions wrapped in and
you're out of control and that's not something a human
really likes. So just try and be patient. Try and
do the head stuff first. And number three is yeah,
try and enjoy it because there's certain moments in life,
if you have children, if you get married, they become
stories as you age. And your house is huge story
(18:23):
in your life. And I do believe our properties hold
us through different periods of our life for a reason.
So try and immerse yourself in the experience good and bad.
Iona Bain (18:33):
Yeah, take the rough with the smooth.
Sarah Tucker (18:35):
Yeah, and trust the process. You will always end up
with the place you're meant to be in.
Iona Bain (18:39):
After going through quite a lot of home buying turmoil
in my life, that's exactly what I needed to hear.
Sarah Tucker (18:44):
Oh, good.
Iona Bain (18:45):
It's going to happen.
Sarah Tucker (18:46):
It's going to happen. And when it does, it would
all make sense. And you'll go, " I'm really glad all
these rubbish things happened because now I'm here." And whatever
that moment is for you, just keep visualizing it because
it will happen.
Iona Bain (18:58):
Brilliant. This is the pep talk that I needed.
Sarah Tucker (19:00):
Good.
Iona Bain (19:01):
Thank you, Sarah. You really helped clarify that home buying
and selling process for us in a way that I'm
sure everyone will find very helpful. Next time, friend of
the show, Claire Barrett will be back to debate property
versus pensions. Should you prioritize getting on the housing ladder
and paying your mortgage or perhaps put off the property
dream to save more into your pension? I'd love it
(19:22):
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 the show on YouTube, TikTok, and Instagram at
Legal & General. Until next time, happy house hunting and see
you soon.
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