Pay Off Your Mortgage In Two Years Blog Discussion

lipidicman

Well I'm not going to burn you for that post and Martin's methods work well in combination with your suggestions. However you do have a point that efforts spent on a business rather than tinkering with your savings be a better use of that important and scarce currency: time.

cuffie

Has the BBC programme ever once hinted that changing your mortgage to a different "provider" could help? No. Has is ever hinted that if you earn more, you could go into a higher tax bracket? No. Has the programme ever looked at what savings there are, and a better place to put them? No.

I am very surprised that encouraging someone to make a business out of baby boxes (only making £3 profit on each box) is helping someone to save money? Am I missing something?

Yes, it is interesting to watch, and I am not really running it down (honest!), but I would have thought things should be mentioned like, putting money saved into paying off the mortgage (this hasn't been mentioned once - or if it has, I missed it!!). After all, the more that gets paid off the mortgage, the less interest in the long run.

Like the previous post though - it is interesting, and something different too. And it is an experiment (not someone saying "they will pay off their mortgage in 2 years...".) Will be interesting to see what the 2nd year brings.

Good luck to them all. I have to say, its nice to be mortgage free for now, but I dread the day we have to do it all again (which is about a year away!).

Dan29

cuffie wrote:

Has the BBC programme ever once hinted that changing your mortgage to a different "provider" could help? No.

Has the programme ever looked at what savings there are, and a better place to put them? No.

I would have thought things should be mentioned like, putting money saved into paying off the mortgage (this hasn't been mentioned once - or if it has, I missed it!!).

You're right, and I think it's interesting that Martin said "the entire programme concept ... was thought up by a team of non-money people in a development meeting". I think it shows, although whether that means the series is of no value whatsoever to the average member of the public (i.e. not a member of this forum) is another issue.

cuffie wrote:

Has is ever hinted that if you earn more, you could go into a higher tax bracket? No.

A few people have mentioned this but I'm not sure I see the problem exactly. If you earn more, you take more home, even after tax. Okay so they haven't gone into detail about paying tax but as they haven't gone into detail about different types of mortgage I suppose this is not really surprising!

cuffie

I suppose I am looking at my own situation where I earn a small amount per year doing a part time job - not enough to take me into paying tax. If I took on more hours then it wouldn't be worth it - the money earnt working those extra hours would be eaten by the tax man! I can't work full time because I have young children...

I see your point though.

Looking forward to seeing what next weeks episode brings!!

Dan29

cuffie wrote:

I suppose I am looking at my own situation where I earn a small amount per year doing a part time job - not enough to take me into paying tax. If I took on more hours then it wouldn't be worth it - the money earnt working those extra hours would be eaten by the tax man!

That's a good point although you still only pay about 20% tax on the amount earnt over your tax-free amount don't you? You wouldn't actually end up worse off.

rebl43

Myself and my husband nearly got on to this program but due to the nature of his job (He's in the RAF) his employers told us we couldn't. Its a shame because I would have loved to!
I do agree with the comments about the lack of info though!

cuffie

Dan29 wrote:

That's a good point although you still only pay about 20% tax on the amount earnt over your tax-free amount don't you? You wouldn't actually end up worse off.

I wouldn't end up worse off, but I'd end up working a few extra hours (quality family hours to me) for "nothing".

charlotte3

I'm still looking for answers with regard to the taxation situation with this programme. I see it as more of an issue with the producers as with the amount of money the participants are working with (prospectively, £900 per week extra income to pay off £90,000 mortgage in last weeks programme) they would not only be liable for a substantial increase in income tax but more than likely would also bring themselves into the VAT payment bracket which then throws up a lot more issues.

It's a great idea to earn more, be careful with your money and pay off high interest long term debts such as a mortgage early, but unfortunately it's not as simple as that.

I am dissapointed this has not been mentioned in the programme and in my opinion it doesn't represent the true cost, and amount of extra income required to pay off a mortgage in two years if the afore mentioned liabilities are not included as they are compulsory outgoings.

stonsey

Does anyone remember what the jewelrey company was called that they set up in this weeks programme?

System

stonsey wrote:

Does anyone remember what the jewelrey company was called that they set up in this weeks programme?

It had the word Candy in it - but thats all i can remember.