MFW Challenge - Pay Off Your Annual Interest aka Yet Another Diary

Floxxie

Ok, the start of yet another month and thought I would update whilst I have some energy. The mortgage is just under £56k but will go above when the interest is added.

I was looking at the MFiT II challenge with FB's fantastic percentage breakdowns of when and by how much the mortgage should be reduced to have it paid off by 12/12/12. I have decided that I shall go for 10% reductions every 3 months; not sure how feasible this is but it's worth a shot. So I think it should look something like this (I won't know the exact outstanding mortgage until Dec 09)

Dec 09 mortgage balance £55000
Mar 2010 £5500 paid off
June 2010 £11000 paid off
Sept 2010 £16500 paid off
Dec 2010 £22,000 paid off
Mar 2011 £27500 paid off
Jun 2011 £33000 paid off
Sept 2011 £38500 paid off
Dec 2011 £44000 paid off
Mar 2012 £49500 paid off
Jun 2012 £55000 paid off

My mortgage pot on my signature is the amount that I need to have in savings in 2012 to clear the mortgage which would have reduced down to this level. Saying that, maths is not my forte and when I worked it out today the calculator told me I needed £25000 but as I have such a long way to go, I shall leave it for the time being and alter it later.

Right now to start yet another eBay marathon to get that mortgage pot full :rotfl:

evab_2

How's your mortgage pot looking? Good luck with a new fresh focus maybe?

Floxxie

Hi evab, thanks for reminding me of my dormant diary :rotfl:

After reading your diary, I went off to check my bank accounts and popped another £1k onto the outstanding mortgage so the balance should be somewhere around the £53k mark which sounds very impressive but I have £30k worth of various expenses to pay out next year :eek: Guess that is the reason why I fell off the wagon with paying off the mortgage

So for now, I shall be increasing my overall debt to £85,000 with the aim of paying off £30k in a year (and hence a change in my signature). Year 2 will be paying off another £30k and the final year the remaining £25k.

So that's the new focus!