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Dentists Who Invest Podcast
Official Podcast of the Dentists Who Invest platform. Talking all things investing, money and finance with a dental spin. Have you ever wondered how you can grow your wealth and protect your hard earned money as a Dentist? We've got you covered. Featuring famous guests such as Andrew Craig, Edward Zuckerberg and Benyamin Ahmed we delve deep into EVERY aspect of finance to educate and empower ALL Dentists.
Dentists Who Invest Podcast
Smart Mortgages: This Is How To Save Money Each Month with Will Coe [CPD Available]
Check if your dental practice qualifies for capital allowances here >>> https://www.dentistswhoinvest.com/chris-lonergan
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UK Dentists: Collect your verifiable CPD for this episode here >>> https://courses.dentistswhoinvest.com/smart-money-members-club
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Mortgages don’t need to be mysterious, and they shouldn’t drain your future. We dive straight into the choices that matter for dentists: when a fixed rate buys peace of mind, how trackers and discount products fit different risk profiles, and why the old “just find the lowest rate” approach often leaves money on the table. Along the way, we look at how AI is changing the mortgage process and what remains uniquely human: a thoughtful conversation about goals, cash flow and the life you want your home to support.
The standout topic is the offset mortgage. By linking a savings account to your home loan, every pound you park reduces the interest charged on your balance, with savings calculated daily and effectively tax-free. That means your salary, renovation funds or even a short-term reserve can work harder while staying liquid. Use it as a live buffer when paying builders, sweep surplus income into it each month and withdraw as needed. The result is often lower monthly costs, a shorter term and a stronger sense of control. For the right borrower, this can outperform many cash products without sacrificing flexibility.
We also tackle interest-only lending with clear eyes. Yes, it still has a place, but only with robust criteria and a credible repayment plan. Too many borrowers reach later life with big balances and few options, which is why part-and-part structures can be a smarter middle ground. With remortgages set to surge, we explain how to weigh product fees, early repayment charges, portability and the reality of your next five years before locking anything in. AI can speed comparisons, but it won’t ask the hard questions about your plans; that’s where an advisor adds real value.
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Disclaimer: All content on this channel is for education purposes only and does not constitute an investment recommendation or individual financial advice. For that, you should speak to a regulated, independent professional. The value of investments and the income from them can go down as well as up, so you may get back less than you invest. The views expressed on this channel may no longer be current. The information provided is not a personal recommendation for any particular investment. Tax treatment depends on individual circumstances and all tax rules may change in the future. If you are unsure about the suitability of an investment, you should speak to a regulated, independent professional. Investment figures quoted refer to simulated past performance and that past performance is not a reliable indicator of future results/performance.
Most of us out there have mortgages, but not a lot of us, or not nearly as much of us as there could be, are getting the most out of them by way of staying on top of them and making sure that we're getting the best rate among other things. And oftentimes these things go unchecked for quite a long time until you have someone with the right eye look over it. And that's why I'm joined today by Mr. Will Coe, expert whenever it comes to mortgages for Dentist. Let's make sure that we're getting the right deal, and in order to do that, let's learn about mortgages, how they work, and how mortgage brokers are evolving with time to become more of an advisory role that will ensure that we can constantly keep our eye on this. More on that coming up. As ever, you can claim your CPD for this episode within the official Dentist who Invest Smart Money Members Club. Smart Money Members Club also includes multiple mini courses and webinar series on finance for dentists, including how to become as tax efficient as possible, as well as understanding investing. All of this content counts as verifiable CPD, and you can download your certificates there and then upon completion of each lesson. In addition to this, we also include a whopping 10% discount on your dental indemnity and a 5% discount on lab bills for dental principals, amongst other perks and discounts for members. Please use the link in the description to claim your verifiable CPD for this episode. Alright, well, this podcast is pretty much exactly what it says in the tin smart mortgages. How can we do better whenever it comes to our mortgage? And of course, mortgages, not always the sexiest of subjects. I'm sure that you will also agree, Will, despite it being your nine for nine. But if it can put more money in our pocket, because we can learn about it, then let's flip and go there. Let's let's do it. Let's let's talk about all of that. And Will, you and I were catching up off camera. We were talking about how AI is well, it's becoming ubiquitous. It probably already is ubiquitous, the rise of the machines, so to speak, and now it's making an impact on the world of mortgages as well. And it's actually shifting a little bit the role of what you guys do as a mortgage booker. But ultimately, we think it'll it's gonna lead to better outcomes for the client, right?
Will:Yeah, absolutely. I think um, you know, anywhere you read at the moment, everything to do with AI is I AI's taken over, it's gonna be Skynet from Terminator, it's gonna be it's taken over. And I think you know, obviously there's natural concern over there, but I think one I can't remember the quote exactly, but there's a there's a really great quote from Charlie Chapman is that machines would do one thing, right? I'm gonna paraphrase this, but as as much as you've got machines, you still need to have that human contact. And I think what AI should allow us to do is be more efficient with some of the admin style tasks, but actually it comes down to the human element and what you do as an individual. And there's there's a great article that um I read earlier today on the financial reporter by Mark Eaton with with April Mortgages, and the blog's great, and he he talks about how is 2026 the year that kind of brokers die out. And the the final kind of sentence that we can start with is this this idea of it's the beginning of the end of brokers and it's a start of the beginning for advisors, and then there is a key difference between the two that he talks about. But what a broker will do is just go, he's almost like an order taker, he'll just go and get you want this mortgage, I'll go get the mortgage for you, which is all well and good. But what an advisor would do is really discuss with you about what options are available to you, what is the best option, is that gonna work, and and really, I suppose, challenge you as a as a customer about what are the options, what do you want to do, how is it gonna work, and and and what does it do? Um I thought what I'll quite like to do is give you an idea about what we would talk about with our clients around what their mortgage needs are, because you know, a mortgage is the biggest financial commitment you're gonna have, right? Probably the biggest, and it's really important that you get it right from the very beginning, because you then get it right, is it could lead to things later on down the road and missed opportunities potentially. So I thought that'd be really helpful, and hopefully that sounds all right for you.
Dr James:Yeah, no, that's that sounds useful, and you know what, wrapped within that, another thing that we talked about um off-camera was offset mortgages, yeah. And how there could be a lot better education out there on what they are and how to get the most out of it. And you you said a really interesting stat, and that actually you can get a greater return on utilizing your uh your your your um your your offset mortgage versus most cash products out there, as in most fixed interest cash products. And this is this is the thing that people don't know because they they rush off. I won't name names. Oh, what's that? There's there's a popular website out there that compares uh cash investment products, and usually the rates are in maybe like I don't know, like three, three and a half percent, which is actually something you can like do with an offset mortgage. Anyway, more on that later coming up.
Will:Yeah, listen to the end. Uh absolutely, you know, I think when you speak to sort of Joe Bloggs on the high street or Joanne Bloggs um on the high street, what often you know you say, tell me about what kind of I've got a fixed rate. Okay, how long? Two or five years. And a lot of people, that's what they hone down on. When you look at mortgages over the last like 15, 20, 25, 30 odd years, is there have been different types of products in the market. Um, you know, people used to have like an interest-only mortgage with like an endowment policy. The endowment policy was almost like a kind of investment strategy that high, mid, low risk. And then that was going to pay off your mortgage balance at the end of the term. And sometimes it never worked out, so it's quite a high-risk strategy. They don't really exist anymore. With regulation that came in the market, is most people have a fixed-rate mortgage, a two or five-year fixed rate, and they'll then you know decide what they'll do in two or five years' time in terms of the mortgage, and they'll have it over a 25-year term as an example. Um, but sometimes you can have real benefits in having a deeper conversation. I'll give you a great example. So my partner's brother-in-law, um, my partner's brother, he um fixed his mortgage for 10 years. And you may sit there and go, Oh my god, why would you do that? Have a 10-year fixed mortgage. Well, we fixed it on an interest rate of 1.6%.
Dr James:That would have been a good move, you know, not even that long ago, right?
Will:Yeah, exactly. And it was just before everything kind of kicked off. So we went for a 10-year fixed rate. And now he's laughing because he's like, I've got this tied in for 10 years. And he thought about it because he's got no plans to move, he's got no plans to need to change the mortgage. He's growing his family. So for him, tying it in for that long knows it's affordable, fine. A lot of people, you know, will rate hunt and be like, oh, well, I don't want to tie in for that long, I want to be able to change it. But this is where, as an advisor, as a consultant, we'll have a good conversation about what are your future plans. So, you know, your standard mortgage is a two-year fixed rate, okay, but there are other different types of products available out there. So a tracker mortgage is another one. So a tracker mortgage will follow the Bank of England's base rate. Okay, so at the moment, sounds probably really attractive because chances are the bank of England's base rate's gonna drop. So the lender would charge a premium above that. So I'm just gonna throw normal figures out there. But if the base rate is three and a half percent, the lender product might be half a percent above that base rate, which means that your pay rate is four percent, okay, which at the moment would be very, very good. If the bank of England reduced their rate by 0.25, guess what? Your rate drops by 0.25. Okay, but the kicker is that if the bank of England increased their rate, your rate increases as well by the same level. Okay, so that's a that's your tracker mortgage. Um and I was talking to um a mate in the car yesterday about it, and he said, Is trackers any good? And it's like, well, it's got to be for the right person. And you know, we have lots of clients who, in terms of disposable capital, they've got a lot of money, you know, they they've got a lot of disposable funds available that they can take the risk of the reward. So if the rate drops, right, they're rewarded by that. But if the rate increases, there's enough disposable funds that means that they can mitigate that a little bit. So again, it's having that good conversation about are the risks worth it for the reward? And and that's where, again, we have a good conversation around that. So that's a tracker. Similar to a tracker, you've got what we call like a discount mortgage. So tracker follows the Bank of England's base rate, a discount mortgage will follow the lender's standard variable rate at a discount. So if the standard variable rate is, let's say, seven and a half percent, and you've got a discount of three percent, that means your pay rate should be, and I can't do that kind of level of maths that quickly, which is a bit embarrassing. Four and a half percent.
Dr James:It's hard, you know what? My heart goes out to you, it's actually harder on a podcast, isn't it? With uh there's like an actual layer of pressure there, and seven and a half minus three becomes hard. Trust me, that's that we will be anyway.
Will:It's more a case of one or to go, it's four and a half. I was more worried about it not being four and a half, but yeah. Um so then so then your pay rate would be four and a half percent, which again, you know, that's discount. And the benefit there is if the lender drops their standard variable rate, then your pay rate drops in line with that. I suppose the real difference between the tracker and um the discount rate is to do with how often those rate changes. So we know the Bank of England who dictate the Bank of England's base rate meet you know every four or five weeks, and you kind of know in advance when they're gonna be meeting, and there might be a change. The lender's variable rate doesn't change as often, it might change once or twice in a year. Um, so you know you're gonna get far more variation or drops or increases with a tracker than you would the lender's standard variable rate, and but the tracker could be a little bit more rewarding. But it all depends, and and this is where we'll have those conversations with individuals. But the one I want us to talk about is an offset mortgage. So I kind of thought about this following our last podcast where we talked, you know, the budget had just been uh released, right? Yes, and one thing that is obviously happening now is that uh you know governments want you to invest in the things that governments want you to invest in, right? So they'll you know reward you for that and disadvantage and other things. And I'm not gonna go down that avenue, but what you do with your money is really important, and how you can maximize that is really important. So an offset mortgage, a lot of people may not have heard of, but it's a really smart mortgage product. And I remember when I was training to become a consultant, I remember hearing about this and thinking, wow, this is actually really cool. Why aren't more people doing this? Okay, so I'm gonna give you an example um on the idea of um buying a property at let's just say 350,000 pounds, okay, and you've got a loan to value, you put a deposit down of 175,000. So your mortgage is 175,000 and it's over a 25-year term, okay. And so on a like like comparison, if you've got an offset fixed rate, okay, for two years of 4.45%, and you've got a standard fixed rate of 4.45%, in theory everything's gonna be the same. But here's where the offset gets really interesting. If you picture um this mortgage of 175,000, but in a savings account, you've got five grand. Okay. Okay, what happens is the lender goes, you've got five grand in the savings account. We're gonna deduct that from the mortgage, which means that we're gonna charge interest on 170,000. You with me?
Dr James:Yeah, follow on. Yeah. UK Dentiststs, Dentists Who Invest now has an official platform where you can learn about finance and obtain UK compliant, verifiable CPD at the same time. The only platform that exists on which you can do both. The Smart Money Members Club has hundreds of hours of mini courses, webinar series, and live day recordings on all things finance slash tax efficiency for UK dentists. This includes complete courses on how tax works for UK dentists, finance so that you can invest and grow your own money, business so you can improve your profitability as an associate or principal, and for those out there that want it, there's also a mini course and how you can responsibly enter the crypto space using measured amounts of capital. I've gathered this content from the best of the best I could find in each respective area so that you know that this is how people at the forefront of each field advise their clients. The Smart Money Members Club also contains discounts on common things that UK dentists need to pay for on a regular basis. This includes a whopping 10% discount on dental indemnity, the offer to beat your income protection deal no matter what you're paying, and for the principals out there, 5% discount on lab bills and 10% discount on practice insurance. These are designed to offer hundreds, if not thousands, in annual savings. The purpose of this members club is to not only boost your monthly income but also manage your outgoings as much as possible and therefore create more profit. To celebrate the launch of the Smart Money Members Club, and given that the CPD deadline is coming up soon, I've decided to offer the first month of this platform entirely for free. This offer will end in the coming weeks as soon as the current CPD cycle is up. To collect your CPD for this podcast episode using the Smart Money Members Club, feel free to use the link in the description of this podcast.
Will:Okay, so what that means is because interest is charged on the loan that's now lower, it's going to reduce what the monthly payment is in comparison to the fixed rate option. Okay. Not huge, but to give you an idea, in theory, you might reduce your mortgage payment between sort of 15 to 20 pounds a month. Okay. That's more than you'd actually get in a savings account. Okay.
Dr James:Oh, yeah, 100%.
Will:Yeah, yeah. So that's five grand in a savings account that's linked to the mortgage and what we call an offset account. You could then reduce your mortgage payment. What's more is that you're probably still putting money away in the savings each month anyway. So let's say that you recur that and you put an extra £500 a month into this savings account. What you're doing is effectively reducing the mortgage balance, therefore reducing the amount of interest that you're paying on the loan. And with the reduced interest, you've got a monthly saving of, in this example, £20 a month. But what that also means is over the course of the mortgage, you could save about £1,200 in total. Um actually, no, no, hang on. There it is, yeah, yeah. So you could make an interest saving of around about £119,000 over the 25-year term of the mortgage. And in theory, you'd also be able to pay the mortgage off about five years earlier. Just in that example from the five just by having that £5,000 in a bank account and just adding five five hundred pounds each month to it.
Dr James:I think that's an example of how compounding can work against you, right? But you're harnessing you're harnessing compounding for you.
Will:Yeah, you know. And the really cool thing is when people go, oh, okay, so what's the interest rate on the savings account? Well, the interest rate is the mortgage rate. So the savings rate is four and a half percent in this example. Yeah. Um the other really cool thing is, you know, and and this is where I I use this example a lot of a client, is you know, people want to do home improvements. So remortgages this year is plans to be really, really big, and people might want to make some home improvements rather than moving.
Dr James:So I just ask a question just before we move on to remortgages. Sorry, because I I think this is just actually very important for the offset mortgages side of things. Just before we move on, is that money instantly retrievable in the offset mortgage?
Will:Uh that's what I'm just going to say. I'm going to tell you about that. I'm coming to that.
Dr James:I thought we'd say away on the remortgages. No, no, no, no.
Will:So I'm going to give an example of where I this is where I would advise an offset style mortgage to a client, right? So, you know, you've got a house that's 350,000 and you've got you know equity of 175 grand in in the property. And I speak to a client, it's like, we want to do an extension on the home, and we need to take out, you know, an extra 15,000, 20, 25 grand. Okay. And let's say that as a result, their new mortgage balance is going to be what, 262? So it takes up to 75% loan to value. So taking out 25% of the equity. Right. The problem is with a conventional mortgage is when you take out that 25% equity, anyone that's done a home renovation, you're not paying all that money up front straight away, right? So why don't you make it work for you by having an offset account? So I'll give you the example. You take the money out, it goes straight into the offset account. So you're reducing the amount of interest that you're paying. And the cool thing is you can just withdraw that money when you need to withdraw it to pay your builder's fees, etc. Does that make sense? Yes. Compared to a savings account, there's no charge to taking that money out. Okay. Obviously, the only difference is that then you're going to increase what those payments are. But as I said, in that example, you're not paying for everything at once. So you're still better off compared to a conventional mortgage standard fixed rate product. Okay. The other really cool thing is that you can put as money, as much money as you want into the savings account. So a lot of lenders have an overpayment charge. So if you overpay the mortgage above 10%, generally speaking, there's a charge associated with that, or there's a limit of 10%. With an offset account, there is no limit to how much you overpay. Okay. So you you can put as much money in and you can take as much money out. The really cool thing is that the savings that you make on the offset account, so that let's say that £20 a month, which over the course of, you know, what 60, so 20, over the course of five years, that's 12, you know, 1200 pounds, it's tax-free. And that's probably the big, big difference. So you're not having to pay tax on it. So this is why I like offset mortgages, really, really flexible, they work for the right client. You know, if you imagine you've got m, you know, you've got equity in a property, but your car breaks down, well, rather than go and get a loan that's going to cost you more, you could just take out money that you need to go buy a new car.
Dr James:Question. And I know we definitely don't want to give financial advice in this podcast. Is it par through the course and is it standard practice that people will put their money that they have set aside for tax into one of these accounts?
Will:I don't know. Because that's never really come up. I've never really talked about it. But in theory, is that it's it's if I said to you with that money you set aside for tax, what do you currently do with that money? Do you put it into a savings?
Dr James:So basically what I'm saying is, is it any more risky than a standard bank account?
Will:It's it is basically a bank account that's linked to the mortgage. There we go.
Dr James:Okay, there we go.
Will:Yeah, and the other thing is you think about that £20 a month that you're saving on the monthly payment. Well, that's just an additional £20 a month that you can then plug into that offset account anyway. So offsets really, really cool. There's not many lenders that actually do them. They are slightly more expensive in comparison to a fixed rate. Okay, so you will get a cheaper five year fixed rate. But actually, if you utilize it properly, ignoring the interest rate, you're lowering what the repayments are going to be. And that's where the saving comes, and that's where they are better. Like I said, for the right person. And the right client, it's the right product, it isn't for everyone. And I've spoken to some people that are really into investments. We've gone into a lot of detail, and actually, they've just gone with a standard fixed rate mortgage because that's what their preference was. You know, and that's absolutely fine. It's just showing that there are other options out there that can work really, really well. Um, and like I said, I'm a big, big fan of offset mortgages for the right person.
Dr James:Boom. Well, there you go. I mean, a few things that I learned in there as well. Interesting.
Will:Yeah. Um, yeah, and I and going back to what you said about the kind of taxing, what I know some people have done is actually had their salary go into the offset account because interest is calculated daily, so they only take out what they need to take out and they keep the rest of it in there.
Dr James:So they're lit as you say, just to reiterate, they're literally using it as a bank account then.
Will:Yeah. So it can work really well just for the right person. But this is where going back to that article is you know, if you just go see a broker, okay, the broker's gonna say, What do you want to have on a two-year fixed rate? Right, I'm gonna have a two-year fixed rate. What an advisor or a consultant would do is go, well, why do you want a two-year fixed rate? Or have you thought about something different? You've got plans, you know, you want to do some renovation work on the property. Have you thought about this? You actually want to move in the next couple of years. Why don't you think about a tracker where there's no early repayment charges, you know, to save you money? So there's all these different elements that AI will not necessarily be able to advise you on. It comes down to, you know, that the broker having that conversation. And it's that human element that we talked about that's really, really important. Um, and I think that's the difference. The other thing is that you know, lenders, lenders traditionally really like brokers because they get to retain the relationship, they get ownership of the customer, and then they just you know send it over to the lender. But now the lenders with AI, they're able to, you know, perhaps automate some of the work. And it's very easy for a client to go onto their phone, their web app, and and click the product they want to have. A lender won't necessarily offer advice, and the lender can only advise on the products that they have. So it's even more important than ever speak to a broker or someone who knows and get a comparison across the market. This year it's predicted to be a really strong year for remortgages. You know, people coming off fixed rates of much lower interest rates. Some people two years ago had really high interest rates that now they've come down. So it's too easy to go to the lender. It may not be the right thing, it might be better having a conversation, allowing a broker like myself to look at a comparison of all of the products on the market, really understand you, your needs, what you want to do, and then offer a recommendation. And that's that's that's me championing, you know, a mortgage consultant from that point of view against you know going direct to a lender.
Dr James:Yeah, well, it's uh there's a similar thing with um in the protection world, income protection and what have you. And I did not realize that income protection was so friggin' complicated until I met a few people through this kind of journey of running Dentistry Invest who literally just do income protection for dentists, as in that's all they do. Well, I say that it's not, I mean, obviously they do other insurances like critical illness and stuff like that, right? Yeah, but uh we have a chap in our financial planning firm, Videre, um, and he does he does uh insurances as in and income protection all day long, nothing else, right? Because there's so much nuance to it, and staying on top of which deal is best in any given moment uh requires that amount of bandwidth. Uh, and people think that they can get a better deal by going direct, whereas what they don't realize is it costs exactly the same, whether you use a broker or not, so you might as well leverage their experience. Uh so I like this sort of transition that you're highlighting from the being a broker to being an advisor uh per se. But yes, offset mortgages, we've done those very cool, very interesting. I have a quick I'm just a little conscious of time, so I'd like to keep this podcast to about 30 minutes. So I have a quick question, and no we skirted over this earlier. Interest-only mortgages, yeah. Do they still have a place in 2026 for the right person?
Will:So actually, yeah, you know, that's one of the conversations that we have with people, and you know, and it does depend on circumstances. And you know, we'll say, right, do you plan to repay the mortgage or interest only? So, yes, interest-only mortgages are still there. The criteria for them is a lot more complicated than it was before. And I'm gonna give a general rule of thumb here, and it's it's not it's different from different lenders, but lenders basically say, look, to have the risk of interest only, we need to have a loan to value below 50%, at least 300,000 equity in the property, and then income over 100,000, right? That that's not the same for every lender, it could be different, but the risk, and and what we're certainly seeing more and more of is you know, when we talk about those endowment mortgages that I mentioned earlier, a lot of them are on interest only because then you know that that that saving pot they've got in the endowment was going to pay it off. I'm speaking to lots of clients that are now in their 60s, the mortgage rate has come to an end, the lender wants their money back, and they've got like a 300,000 pound mortgage left over and because they had it on interest only, and and you know, it's a very difficult conversation because you know, well, what were your plans when you set up the interest only? Well, I was gonna sell the home. Okay, well, why are you not gonna sell the home? Well, because it's my home. Okay, but this is the risk of having an interest-only mortgage, so you have to have a repayment strategy that is realistic. It's too easy to say, I'm just gonna sell the home. And you know, we're in a regulated environment now where a lot of those conversations should be happening. A lender won't accept an application unless there is a fully justified reason why interest only is suitable, and in some instances it is. I personally, you know, if I speak to a client and says, look, I want to have interest only, I'll ask the question why. But where we draw down is actually looking like a part and part. So we might suggest that 50% of the mortgage is on interest only, but the remaining you know, percentage is done on a repayment basis. So that is a midway point. A lot of people say, I just want to have interest only just to keep the repayment, you know, the payments as low as possible. Well, that's all well and good, but you're not actually reducing the loan amount. What you're doing is kicking the can down the road. And what's going to happen is now you're five years older, it's going to be harder for you to have a repayment mortgage for that full balance because it hasn't reduced for a much shorter period. And you think about my clients, you know, in their 60s, they're retiring in four years' time and they've got a 300,000 pound mortgage. They can't afford the repayments. And so, you know, in those situations, you know, we have got lenders that specialize in later life lending that will allow like longer terms, but then a lot of the income is going to be based on their retirement income, you know, which isn't as strong as what their earned income is. And it it it's really difficult, really difficult conversations. But again, you won't get that potentially going directly to a lender or speaking to a broker. You need to speak to an advisor who is going to really discuss that with you. What are the impacts? What are the risks? What are your plans? Are they feasible to make sure that everything is packaged right? Like I said, is having a mortgage is your biggest financial commitment. And it's really important that you get it right because if you get it wrong, the consequences can be disastrous.
Dr James:And just on that interest-only mortgage that we talked about just a second ago, just to round that one off. If someone already has a mortgage on a fixed term and the fixed term is up for renewal, is it possible to then transition to an interest only? We're getting really into the complicated stuff now.
Will:Uh well, no, no, so you're talking about two different things there. So interest only or repayment is is the plan to repay the mortgage. So that's what is the repayment type. The product type is whether it's a fixed rate or like a variable rate. So if you've got yes, sorry.
Dr James:What I should have said was if they're what's the terminology for a an a normal mortgage then, not interest only? So just a repayment mortgage. Just a repayment. So that's they're at the end of the fixed term of two years of the repayment mortgage and they want transition interest only. Is that possible?
Will:Yeah, it is, as long as they kind of fit the criteria of the lender. So uh when you finish your mortgage product, so that two-year or five-year period that you you have a product for, or if you've got a tracker, there isn't really any, but you know, let's just say on a fixed rate, two years, that's coming to an end. At that two-year point, you've got the opportunity to make changes to the mortgage. You could increase the term, you could lower the term, you could go for a five-year fix, you could increase the loan, you can make any changes outside of that initial two-year contract. Things like a phone contract or a gym contract, you're signed up for two years or a sky contract or other providers available, but you can sign up for like a period of time with a contract. Any changes you make inside of those two years comes at a cost. But at the end of the two years, you've got freedom of choice. And so that's where you can then make changes. But it's certainly possible if you've got a repayment mortgage and go down to interest only, you can do that. I want to ask why. And it could be I want to reduce the payments. One might suggest, well, why don't we extend the term to lower the payments but still keep it as a repayment mortgage? You know, it's having those discussions, and that's far more valuable than just going, yeah, yeah, okay, gone to lenders. Yeah, sorry, you can't do it. I'd rather say, Why do you want to do it? and then get the most suitable option that that's gonna work for you and allow you to have a mortgage. So uh in summary, I think you know we've covered an awful lot there. But James, hopefully your listeners like what they hear. But I would always say is is it's about getting good advice. If you want to give me a call, you've got my details. Um, you can drop me an email at uh william@ clearly.co.uk, you've got a number, I think you'll put it on the link as well. But give us a shout and drop us a line, and you know, we'll get you in contact with a consultant, with a broker that will have a good conversation with you about what you want to do, what your plans are, and what's the best options for you.
