The Vault with Financielle - "I Was Gifted £50k and I'm Buying My First Home Alone” | The Vault Episode 125

Episode Date: July 16, 2026

From massive life changes to big money gifts, this week's dilemmas are proof that even good things can still keep you up at night 😅This week's dilemmas:💸 "I'm Moving Abroad for Two Years — What Happens to My Pension and ISA While I'm Gone?"💸 "I Was Gifted £50k and I'm Buying My First Home Alone — What Do I Need to Know?"Got a dilemma that's been living rent-free in your head? Share it (totally anonymously 🤫) in the Financielle app community or email [[e-mail]] 💌You don't have to figure this out alone. More honest money chat at financielle.com 💖💸Connect with our Partner🫶 Protect yourself and loved ones with our friends at Lifesearch** The above is a tracked link, which tells our partner we sent you and may in future result in a payment or benefit to our site.

This episode is brought to you by Accenture. When your advertising operations fall out of sync, everything else follows. Spotify and Accenture are working together to reinvent the rhythm of ad sales, using automation, analytics, and smarter workflows to simplify campaign delivery and access better data across the business. The result? Less time spent on operations, more time connecting brands with the moments and fandoms that matter most. Learn more at Accenture.com slash Spotify.

The Hulu original series Furious is coming to Disney Plus. Starring Emmy Rossum, Furious follows FBI agent Alice Black on the hunt for a mysterious and calculating serial killer. Both walk their own paths toward justice, and as their lives start to intertwine, the line between right and wrong begins to blur. Don't miss the three-episode premiere of the Hulu original series Furious on July 27th, only on Hulu on Disney Plus. Welcome to The Vault with Financial. This is a safe space where we talk all things life and money and no topics are off limits. Howdy? I'm not saying.

I'm hoping you're going to say howdy today. Everyone always says howdy to us now in the community. I'm like, oh. Start the dilemma emails with howdy. Yeah, they do. Yeah, Audi. Got a dilemma. I read in on Australian accent.

Okay, today's community question, have you ever broken up with someone or wanted to over money? I can't wait to hear what they said What did they say? There's some juice Right, so we've got a few messages, responses on Instagram and then we got a juicy DM. So someone said,

Yep, always had bailiffs at the door and he spent thousands on my credit card behind my back. Wow. That's cars for a breakup. I know. Yes, he would want everything split down to the penny. E.G. send me £23.66, thanks.

No. She said you. Someone said, yes, a best friend. I rented her my flat and ended up 2.5K down in four months and overcharged me for repairs. Oh my God. That is the friend one. Friendship breakup. That stings more for people sometimes.

Yeah, it does, isn't it? And it's friends than a man you're never going to see again. Yeah. Okay. Someone DM does a wild story. She said, I was with my boyfriend throughout my teens and early 20s. I kept lending him money, not really understanding why he was so skin, as we both had decent jobs for our age,

found out he was gambling, drinking and getting payday loans. Once I found out about it, he promised to pay privately for weekly therapy. I wanted to buy a house with him, brackets, young, dumb and in love. And we had made a plan to save 12K each in a year. Budget set, spreadsheets, ready, the works. I achieved my goal, and he kept. telling me he was on track for his half two. So he booked a mortgage advisor appointment for us and I was so excited. He had finally got his shit together. At the appointment, we were showing our

bank statements, etc. And I found out he actually had no savings. He repeatedly told the advisor he had it in cash savings somewhere. The advisor's face was a picture. Oh no. When I took the opportunity to read his bank statements, it confirmed that there was no therapy payments, all gambling, and many pubs. The realization that he hadn't changed at all and that I'd wasted so much time and energy trying to help someone who just took advantage of my kindness. I was hysterically crying in the middle of the appointment. I felt so sorry for the poor advisor. The advisor just said, I think we need to reschedule this appointment.

Oh my God. I can look back at it and laugh now. I hope I was the advisor's most memorable client. I bet you, I bet it happens a lot. I bet, yeah, I bet you're not that special, no offense. And maybe that'll make you feel a little bit better. Do you know what's such a shame about that one as well is, there's a line where like someone has issues and both can be true by the way someone has issues

and literally just lying about everything and what did he think was going to happen like we're going to rob a bank for the cash I've got oh I've got cash but it's not here and I you must have felt a bit validated by the mortgage advisor because they were like mm-hmm it's probably the best thing that could have happened to them because there might have never been a line drawn do you know like obviously it would have ever You're never going to buy a house. You'd never got to buy a house because you'd have to have saved it all yourself. Is it he but the apparel?

I don't understand. Well, the officer just thought they could wing it by saying, I have got it somewhere. You know, I'll just say that. They've probably got to a point where it's like... And then tuck his bank statements. Like, what an idiot. Like, said, there's an absolute safe space for people that have addictions. And, God, obviously, we've been going through World Cup games and stuff in recent weeks.

And there are so many gambling adverts. It's unbelievable. I'm literally like the ethical side. I just can't comprehend how many ads there are. Just put gamble away on the end and it's okay. It just shows you how many. And like, you know, it's each to their own and people have like,

Grand National will put a bet on or not. A flurry. You know, is that what it's called? Yeah. Is that what they say? Flutter. Flutter? Flutter.

Flutter? Flutter. Flurry? I don't know. Flurry. I think we just say it with confidence at the right. but I don't know. Yeah, I believe you.

A dabble, a little dabble, you know, we'll get a lottery ticket. You know, it's, it's, when it's the World Cup, or might back England and the biggest try scorer because the answer will be big, because you know we're not going to do well. But there's definitely an element in a safe space of people

that do have particular, particular add to cost money and gambling. It's so sad. We've had the dilemmas in. We've had the people like, they really, really can't help themselves. They really struggle. You've got partners that are like, should I stay with this person?

Because ultimately, like, is this a thing just like if someone's got an alcohol addiction? So whilst that's kind of ring-fenced, actually he's lying about everything else is going out, he's drinking, is not saving, he's not doing the therapy that he committed to. And he's just lying to, oh, he did, obviously they're not together now. So, yeah, what was it like?

That's bold, that tells me someone is just a compulsive liar that has gotten away with so much and so long that they just think they're clever. They think they're better than everyone else. Not a whole small mortgage advice. The mortgage advice is like, in a piggy bank, literally. Never.

We'll reschedule it for, it's in 12th and never. That was a very diplomatic way to end the appointment. She's crying. They will come back and do this again. Well, I can't wait. So we didn't get a close from her in terms of like, she's been and bought a house,

as she? Because that would be like the finale that we need. She's giving the vibes that she's like, she's well on away. She did the work. She got 12 grand sat there. I love how neat they had a plan. Should you lend money to family and friends?

What is an effort fund? How do I build my emergency fund? Well, we're so glad you asked. Head over to financial out.com where we tackle the money topics you actually care about. Okay, time for our first dilemma. I'm moving abroad for two years. What do I do with my pension and investments while I'm gone?

Hi, ladies. My partner and I are moving abroad for two years and the logistics of it all have been overwhelming. But the thing keeping me up at night isn't the move itself. It's the money. I'm 31 and I've been in my workplace pension for about six years and have around £28,000 in there. I also have a stocks and shares I sell with about £14,000 in it, which I've been contributing to monthly, and I have £8,000 in a cash savings account. Here's my problem. Once we leave the UK, I won't be a UK tax resident anymore. I know I can't contribute to my ISA once I'm no

longer a UK resident, but do I just leave it and will it still grow? What do I do about my pension? too. Do I just stop contributions and leave it sitting there for two years? We're planning on coming back eventually so I don't want to do anything drastic. I just want to make sure I'm not accidentally doing something I'll regret or missing something that I should have, should be doing before we go. Is there anything I need to sort before we leave? And is there anything I should be doing with my money whilst we're out there. I love the forward. This is forward planning to the hill. It's like, we'll be type A. Yeah. We've been spontaneous, but with a plan. What time does the flow start? But even the just.

Just the fact that this person is being so diligent and understanding what not doing, the impact that not doing something could have. You know, she's been on a role, she's got a routine, she's actively investing, and she's literally going, okay, if I don't do that, what do I do? I think firstly, obviously, we're not giving financial advice on the show. We just chat and say what we would do. And when it comes to not just investing, but also tax, we're super aware that, you know, you shouldn't really be, you shouldn't be following what we're saying because you should go and get

proper advice on it. But this is how we would talk it through if it was. And I think the big thing here for me is that it's a two year timeline. So it sounds it. I would be sure of that. I would want to know that that's what we're talking because we're talking two years. Lots of people pause and lots of people lower or halt or do something different for two years. And generally it shouldn't have to begin impact if you're already, doing it. Obviously, you're going to miss out on two years of contributions to your English stuff, to your UK stuff. But be sure of that because any decision you make needs to be based on that plan. And it's any longer than that, then there are things you're missing out

on. She quite rightly says, if you're not a UK tax president, you don't get the ice of benefits. And I think, and obviously she won't be contributing to a workplace pension because presumably she'll be leaving work. If she's not leaving work, she should speak to her HR team. but on that basis, I think it's probably one that you need to know about what that timeline is. In terms of where things are invested, it's making sure you're happy with where they are. So before leaving, what's your stocks and shares are you invested in? What's your pension invested in? Know that because of contributions aren't being made.

Is it diversified enough? You don't need to be particularly aggressive. Is it something that doesn't keep you up at night and gives you comfort? And then what are the other thing, I think you have to tell HMAC actually as well if you're leaving. So make sure that you speak to HMC because you're halting being a UK tax resident. Now, depending on where you're going, there's lots of specific rules around where you do and don't pay tax. So I just think you need to bottom that out. If you're going out with an employer or with a partner's employer, get all the help you can there because the rules change depending on where you are.

And ultimately, you know, unless you can find. a tax-efficient way to invest. You can still invest in a general investment account. It's called a GIA. It's on any of the UK platforms. It's just would be susceptible to tax. And again, you have to work out where that tax is due and whether it's UK or whether it's somewhere else.

But it wouldn't be a tax wrapper. So you'd have to double-check that and get proper advice on. If I can invest, where do I pay? How do I pay tax? How much do I pay? And who do I pay it to? And so otherwise, you know, don't let it stop your money-growing journey,

but maybe you would save, maybe you would hold it in tax again. If you cannot have the benefit of a tax wrapper, i.e. an Isa, you're going to have to pay tax on any growth depending on where you contribute that money. So I think it's the bigger answer for us with this dilemma is well done for thinking about it and for acknowledging that two years not contributing into two investment spaces will make a dent in contributions. Some people have this when they're on mat leave if they can or can't contribute. Some people, you know, go through health issues. Some people go through a tight money time in their business and they have to pull back a little bit. And so it's not uncommon.

It's like a natural part of the course, isn't it? Not everything's so like linear. Yeah, yeah, you're not going to contribute. And it's not ideal because we want time in the market. Don't forget, you were the stuff still in the market. So there's stuff that you've done so far will still be there. And I mean, that's a nice little cash lump sum that she's got. You know, I would like to think that that could,

stay and be returning to UK kind of money, like forget about money. It might be a bit of an emergency fund for when you move. But it's not a huge amount of money. So of all the things she's said, and if I sit and think about what I would do, I would want a bigger cash emergency fund than eight. I know she's got stocks and she says I said, but I'd want more than eight. And so maybe I'd be tempted to use this time to bulk that up. Understand any growth, you know, where I'm meant to pay tax on that.

but I'd probably also take advice on how can I still contribute to retirement if it's not my UK pension and get advice on that because she's been doing it already. There's no reason why she shouldn't. And like I said, what sometimes happens is a two year turns into a five year and you don't want to get into a situation where you didn't do anything. There's lots of both lawyers and financial advisors that help with expat stuff. So if you're going elsewhere, what your options are. So for what you're doing already, it's probably worth paying someone and taking advice. Yeah, definitely. I remember like we had a dilemma for years ago

that was like an Australia the lady was moving to Australia and they had, they were prepping in advance I think it was like 80 months in advance or something and she was like, so I've got my emergency fund and was she like selling a car or something as well to try and make up for it and we were just like you need a bigger emergency fund

like you were having a big life change up ahead like and you've got a really lean like emergency fund moving to another country you don't know if you need a rent deposit you don't know if you're going to have to pay certain visa fees. You're a bit more vulnerable.

I think. Yeah. For some, like you're not near family and friends. Like if something happens to your house, you can't go live

with your mom and dad or your best friend or your sister or whatever. Like you are, I personally would want more of like a robust emergency fund and safety net because you kind of like

you are going out on your own. It's exciting, but I would want those for, like, I'd want the safety net in place and it'd be much more robust than kind of what she said. But,

because two years. I'm being away for two years. She can like, depending on where it is, like enjoy, live, live, love,

it wouldn't be a bad idea to build, book up that cash emergency fund. And like I said, there still could be a tax implication for any growth that you make on that. Because we want you to be making money. It's fine to make money as long as you're paying the taxes that's doing it rather than it being in an odd percent and not doing anything. But good forward planning. I wonder where she's going. I need to.

Those are very poor details that were. I don't actually. Can we stop putting these in, please? Otherwise, I'll just make it up. She's going to Sweden. Okay. expensive there need more money there

yeah before we get into the second dilemma please could you subscribe oh please can you subscribe on Spotify follow on Spotify

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we really are enjoying Spotify comments yes A bit of a conversation. If you've got a community question answer, have you ever broken up with someone over money? Please tell us. If you've got some dilemma answers, we always will send them to the person who send the dilemma. So if you've got any crazy, weird and wonderful advice, please take a moment.

It's a two-way chat. I feel like we're in a room, the five of us all here, aren't we? And, you know, this is us social chatting. really. It's a silent dilemma because you're not here to tell us. We would be talking about all of this if there was no microwave. This is literally what we talk about all the time anyway. Sometimes there's food as drinks as also. Maybe we should. What's that pod that you like with the food and the drinks? Oh, dish. Dish. Maybe we could dish it up. But we do feel like we want it to be too way. We want like. Well, we know that you're shouting, you know,

down the, yeah, into the speaker of your car. Yeah. All that vibes. Because we know that our friends then tell us after that. I can't believe that dilemma. I was up. So if you're, yes, I'm like, can you write it down? But also if you've heard something and it's made you do something, like you heard an episode and you were like, oh, actually that's me. It's prompted you. I'm going to start doing that because this is all like, it is a bit of snowball, not just a dead snowball, but it's a snowball effect because the more people that do good stuff

and then share that they do good stuff, you inspire someone else to do good stuff, and lots of stuff, good stuff, custom. Yeah, not just for you, but the people in the lives around you as well, like the positive effect on family members and children that were bringing up. Yeah, tell people, if there's someone in your life that you think were benefit for this pod, they don't have to be shit with money to listen. You can't be good with money to listen to girls. You can be smug and listen.

Yeah, like this is nothing to do with me. But I like listening. Struggling to make it to payday, the financial app helped me track my money, pay off debt, and finally feel in control. I've built savings, I've started investing, and I actually feel financially well. Download the Fanishel app and start your money comeback today. Okay, time for next time. I'm gifted 50,000 pounds and I'm about to buy my first home alone. What do I need to know? Hi ladies. I've been a listener since July 2024 and I absolutely love, love the podcast.

As a neurodiverse listener with a learning difficulty, the way you break everything down makes it so engaging and genuinely a lifesaver. Now for some context. I'm 26 years old and through a combination, of luck and hard work, I've found myself in a really positive financial situation. My full-time job pays me 55K. I have savings and spending pots set up. I've been contributing to my pension since age of 20. I have an emergency fund, no student debt thanks to a scholarship, and about 36k stashed across savings and investments. It hasn't all been smooth sailing, though. I've found myself in some questionable financial situations over the year, including financially supporting an ex-partner who was entirely capable of supporting himself and ended up with a CCJ on my credit report

from a dodgy parking company, which has since been removed but was costly despite not being my fault. But with no consumer debt and a credit card I use for small regular purchases and immediately pay off, I know I'm very fortunate. On to the dilemma. In December 2025, my parents sold their second home and on Christmas Day, I found myself with a very generous gift of 50k in my bank account, with no stipulation on how it should be spent. I've been dreaming of owning my own home for years,

but I'd struggle to get my earnings to where a lender would need them to be. So having this gift alongside a fairly new and improved job, I was thrilled to finally start house hunting. I did all of my due diligence and found somewhere I'm excited to call home. I'm working my way through the purchase journey and have a mortgage offer, a five-year fixed-rate deal that I'm happy with and is well within my affordability. I'm putting down a 70k deposit on a purchase price of £256,000. Now, I'm generally very debt averse, and I'm having last-minute panic about the complexities of a mortgage agreement,

especially as I'm doing this completely on my own without a buying partner to be anxiously excited with. My only significant regular outgoing, aside from the norm, are payments for my master's degree, around £550 a month, no interest and costs for my service dog around $1,000. 90 pounds a month. I was really hoping you might be able to give some advice for a first time buyer going in it alone. And any specific advice on overpayments or things to watch out for would be massively appreciated. Big love to the podcast. Merry Christmas. Merry fucking Christmas. Can you imagine opening your banking app and just be an extra 50? Are you sending this to my parents?

What? What do you have Christmas? 50-g-50K, second option, 100 grand. You choose. I'm flexible. I won't be disappointed if it's. So you read that about when people got like an accidental payment into the bank account and then they spend it and wonder why they have to pay it back. Did they have pay back? Yeah.

Shit. Come on. Oh no. How does that happen? I don't know. Glitch. But surely that's. They just give it.

It's their fault so I don't need to pay back. Yeah. You hear people like run out to spend it as quickly as they can. Because then you always go. Imagine if you got, but people get like 200 grand by accident and they spend it. And I'm like,

you really didn't think that someone was going to come back for that 200K that landed in your... Because if you got money taken out of your account by accident, you demand that... So you're down the pub till then they could. So they go...

Well, this guy says... They'll never find you. It's their fault. Wow. What a Christmas Day gift. That's a great gift. Many congrats. Home ownership is not to be sniffed out

even though you've had a gift. It's still a big tax to take on a mortgage. She was well in a way. Before that, I know this has tipped her over in terms of being able to get that chunky deposit. To be approved for a mortgage shows that you've got good spending. She's got 36 grand like here there and everywhere. Fantastic.

It's both in investments and savings. She's obviously got, during the deposit is included within that because she's managed to find 20 because she's been gifted 50. Just impressive. So I think what I was first start off with is saying you're already killing it. You're already doing all the things that you definitely are required to know how to do to be able to effectively, you know, be a mortgage payer. I'll be a homeowner, but be a mortgage payer.

But what she said is right. And those people that bought a house on their own listen to this podcast, you'll know it. It's like, I bought on my own and I did find it overwhelming. Like no one else can say whether the house is a good buy or not. or my mortgage interest rate was awful. And I don't think it could have been any better because I just think that was the realities for first time buyers.

But people didn't say, do this or do that. People just let you to it and let you get on with it. It's overwhelming. And you see this paperwork that says, you know, you're getting a 100 and, what are you getting, 250,000, 180 grand mortgage? And you, and by the way, over the term, this will end up being like 200 or 400 or something like crazy, however the interest rates are.

Across the whole term, you're going, oh my God. And you see all this paperwork that says you can be made bankrupt. The house can be taken off if you don't make your payments back. Your responsibility, no one else is. It's very overwhelming. I think it's definitely a big girl pants time. Like it's a big event and a big moment. Honest to God, once the first two, three payments go out, you don't worry about it.

It sounds like she's got a really manageable budget. So her expenses can easily, her income can easily cover her expenses. And that's the why when we talk about buying a home at financial. Like you don't want the payment, the mortgage payment or the rental payment to be ideally more than 25% of your take home pay sometimes for like city centre or especially London, it might be 35. The reason why we advise against it being anything, or that we tell people try out to do it higher than that is because you're squeezed and you're not going to be able to save. You're not going to be able to pay off debt. You're not going to be able to sort yourself out. You're not going to live a nice life.

you're going to be so, so stuck with just being a slave to your mortgage payment. And so it sounds like she's also not done this. She's got something that's absolutely affordable. But that's where the stress comes in because there's just no headroom. So anything that goes wrong, interest rates go up, extra cost comes in. That's when you go, shit, can I pay my mortgage payment? And when you're all the only one, that's overwhelming. So if you can have this solid emergency fund, which she sounds like she's in a good place and she's got,

if you can have headroom in your budget, because it means if costs go up somewhere, the mortgage payment needs to be top of the list after food and making sure that you're heating yourself and eating enough, then that's next. So other things will be able to slide. You know, in the worst case scenario, as long as you can make sure you can pay your mortgage payment, you know, if you skybills late, sky bills late,

you know, if you can't pay, you can't go out and have fun, you can't go out of fun, but you will generally order them in that order. So you'll just feel okay because even in a worst case scenario, you'll be able to navigate it. And very quickly, I don't know at you all, I feel like it changes to just feel a bit like a rent payment. Like I don't look at my mortgage payment and go, no, it feels like a big deal, I think before you then,

like you say, you're two or three months in and it's just like, this is our routine now. You're just changing your money routine. Like you said, you've got space in your budget to, it's stressful. It becomes stressful for people when they've overstretched themselves. And it soon becomes apparent two or three months in when you're like, we're going to have to cut back on this.

We're going to have to cut back on that because that monthly mortgage payment is making me feel a bit ill. Whereas I feel like she's chosen a house. She's done her homework, chosen a house within her budget range. Obviously, thrown loads on money at the deposit, which helps in all areas. But like she said, what kind of things should I be thinking about? Moving house is expensive. Like, things are going to cost you.

You might have to pay for things up front that you didn't quite expect, whether it's to do with, I don't know, broadband or household tax or. Utilities or like there might be a changing, like your car insurance because you're moving to a different area. I would have like a mini emergency fund. salt and pepper and vinegar like unless you take them from my dad's house

which is one of my other tips what do you want for your new house you're like can you get me condiments because vinegar's expensive oil's expensive I think our parents definitely are Nana

and I know you supposed to pound land and come back with like a new like spatula once every wig and shop and then you just a sieve or something

but I definitely our parents took the opportunity to upgrade their stuff and then you can get their stuff but you are right you'll need money that for stuff

you don't even aware of. Fees as well. Like, people always don't save the fees. They're underestimated on the fees. No. And the other thing is, how many times have we had people in this community in friendship groups?

First day in the house, roof's leaking. Something doesn't work that they didn't tell you about, something that's annoying. And that was our earmarked for painting the bedroom and suddenly like you're doing something that you can't physically see and that's annoying. So cash is queen when you buy a home.

And not getting sucked in to feel like you need to decorate everything. because taste changes well. Like you move in, you're like, right, I want everyone to come and help me paint these walls. Like, I would, personally, I know it's really hard because we've all been brought up in the Instagram era of like, everything's got to look amazing and perfect. But live with stuff a little bit. Like I painted our living room yellow. Why? You'll never see me in yellow.

Like mustardy yellow. And I'm like, why did I do that? And I had it for so long, like, all the way through COVID and stuff. You can see all my pictures with the kids like in this yellow living room. And I'm like, what the hell was I thinking? But now it's a beautiful, like, green and green is definitely my couple. because I see it in other like aspects of my house and I was like if I had just sat on it a little bit longer

and not felt so impatient to get the wallpaper off and get it painted. And to make a statement like this is my... Yeah, and it just didn't work. So I think, you know, you need to sit like, what does a light look like? Oh, I realise it's really sunny at the front of my house so having a yellow room and loads of sun like it's a little bit crazy.

Whereas it would have been in the back room, it might have been more muted because it's north facing. You just have to sit. I want you to sit on your hands and not go wild in TK. Marks and not go wild in home bargains because tastes change. And also, you don't want to buy cheap sometimes because you do end up buying twice.

So it might be better to sink in fun some stuff, get a nice house and garden pot going. And then when you finally got the time to make the purchase, you're not stretching yourself so much it's been allocated and spent for. That's really good idea, actually. Like, if you know you're going to be spending in the house, focus to build a pot for it.

I think it's a bit tighter. Yeah. You know, like when it's always the case, the girl is always, I always say it when it's payday and you're going to Zara and there's nothing. But like towards the end of the month you're like, I could buy the whole shop. There's like there's some sort of mental like thing around that, whereas you've got this abundance of money that you've put aside. You really care about how you spend it.

Whereas if it's just not your money and or you're just, you're like, oh, it's a bit of a treat for me. And I think when it comes to overpayments, we, you know, we had this on a dial in the flow of the playbook. And so making overpayments is. is a great thing to do. It can massively knock months, if not sometimes years, off your mortgage. It means we're keeping more of our money versus the bank. We own more of our home than the bank does. But it's all to be done in balance because, you know, it is a big undertaking, a big, is debt, but obviously it's secured on a home and it's just kind of the way that we're able to buy homes nowadays, especially in the UK with the cost of houses. So making sure you're going down the play

book, which is do you have a good emergency fund? Are you consumer debt free? And then once you pass survive and build and you're into grow, are you having a good balance of investing for your retirement and for the future? And that can be both pre-retirement age in stocks and shares, Ices, or it can be pension, and look at overpayments of the mortgage. And sometimes if they can both fit into your budget,

automating that and making sure that usually you can overpay 10% without penalty of your mortgage, so making sure you know that figure and you stay well under it, because there's no point overpaying and then having to pay a penalty. Imagine being penalised for overpaying the mortgage. I hate that rule because if someone comes into inheritance or something

and they've got a chunk of money that they've never had in their lives before, you can't pay most of them all than 10% of your annual payment. Of the no of the outstanding mortgage balance. You can't pay. It's done to lock you in. Because they want the interest, don't they? Well, they do. And to be fair to them, that's their fee.

So, like, what could happen is this is one of the reasons to do it? you get a mortgage with Bank A and it's 2% interest rate. And then the next bank comes along, the rates change and it's like a 0.5 interest rate and you go, right, I'll borrow from you and I'll pay off that one. Bank A took the time to lend you the money and they forecast making a return on that with the interest. It's just a punitive rate. It's really, really high and you can't, you know, I wonder if there's a way that you could overpay and it's bigger than that, but you can't move it. I don't know, but yeah, if you come into inheritance and stuff, you have to sit on it. You have to pay and just decide you're going to pay or wait for the term to come up.

I'm just about to say you can wait for the term and then you can pay it, can't you? Drop 10% in. Drop 10% in. But some people do, some people say, how much should I overpay? And it depends on how much you have in your budget and what your other goals are, how your investing is doing, how aggressive. Some people prefer investing and go and keep your mortgage there. Some people want the mortgage gone. But as a general rule of thumb, if you work out what 10% of the balance is,

and then divide that by 12. Look at what that figure is and come under that. If you have that in your budget, some people direct debit that. And then they reset it every year. So it's a bit more scientific than that. So I'm just... That's a rough idea. It comes down a lot, obviously, in the early as well.

So you have to have a look at it. But there could be a chunkier way that you could stay under that 10%. So that's one way to look at it. Especially if it makes you feel a bit nervous. But I feel like you are one of the most prepared people that's message does. Don't you to feel under pressure to pay off the mortgage as well? Like the minute you've got it, I'm going to pay it off. Yeah, you can sit with it.

Same. Yeah. Because ultimately, when you pay off a mortgage, you're reducing the debt on the property. So your equity in the home goes up in terms of what you own of it. But it's locked in a brick. So if you need that money, you have to either re-borrow or sell your home. So that's why a huge emergency fund, especially if you're a solo home buyer, is just wonderful. because, and it's worth sometimes that

and making sure that you're optimising it for interest and making sure that you make a good return because if you need it, you can get access to it versus if it's locked in the house, you can't get it. And actually, just on that point in terms of affordability that we were saying earlier, one of the most stressful things for people is when two people borrow to buy a house

and they borrow as much as they can and a relationship breaks down or someone gets poorly or someone can't work or someone's on materially, lots of different things. The number of conversations we are having with people in this community who are separating from people

and neither can afford to keep the house or the only person that can afford to keep a house has wealthy parents and that's how it's happening because people are leveraging so high and buying the big family home or the big, you know, aesthetic home. We need the four bedrooms,

we need this, we need that, yeah. We want to stay in this area and it's all fair and, you know, it makes sense, but it kind of prices you both out of this home because ultimately, and so I don't know that's like a bit doomsday, but it also helps to show that when there's less of a pressure, you're not having to think who can carry this on.

I don't know. That's probably not the right thing to say, but I just think that even when there's two of you, you never know what could happen. It comes back to the making sure also that she has the right protection. Oh, just about to say, we missed that one. You missed protection.

Yeah, especially if you're solo. To help cover that feeling of anxiety, like can I cover the mortgage? Should I get poorly? Go to financial.com, false, slash protection and speak to live search and just ask the question. Chelsea will pick up the phone or Gemma, one of the ladies at life search and just go, right, I've bought a home, I'm a single female, this is how much I earn, this is how much I've got in savings, this is a type of job I've got,

this is my mortgage, like she'll ask you all these questions, or you can have a call with her to say, what do I need to bring to the meeting? Because it's good to bring all these stuff together. A lot of the financial girls is all real off the budget, they know it. She's like, oh, you're, anybody that rings up from financial is so in tune with how much money is where and what they can afford, but have the chat. If I was a, so I'm transparent, I have critical illness cover, and I have life insurance, both with life search. I don't have income protection.

It was something that I looked at and considered and decided to have a bigger critical illness policy instead. Because the two of us in our relationship, as far as I'm aware, no more, no less. Princess Diana. There were three of us. It's both of the way. But and so what I kind of worked out was that and because of the size of our mortgage,

either one of us with our salaries could cover it because that's, again, this is what I talk about. We didn't overmortge. We haven't overbought a house. We've really managed that. And so that was my logic. But that came through an in-depth conversation about, one, my budget and what I wanted to spend on protection and two, our circumstances. And if I was buying or if I was staying in the home, I would then re-look at it because it, just as our, audience dilemma writer-inner said,

I would be a little bit more stressed about not just those really, really serious circumstances, but also temporary circumstances. You know, mental health is one of the biggest reasons that people have time off and you can get income protection cover for mental health depending on your scenario and your full disclosures and stuff.

I could hurt my back with kettlebells in the gym, definitely an option. And I might not be able to sit at my desk and work or travel into town for work or into the city. there's things my risk profile would change and so my anxiety would change and so I would go a little cap in hand and go like, here, this is my situation. What do you think? That's another way, including your emergency fund and including the size of mortgage or house that you buy, you can manage what feels like quite a daunting thing. And then I promise you, four or five months in, it's just like a bill. You don't realize it. Exciting. Okay. That is all for this episode. The Vault is now. close and just a quick disclaimer of the vault is just a chat around life and money topics we are not giving financial advice