Quest To Pay Off My 150K Mortgage in 3 Yrs!

Dithering_Dad

Hi Guys,

Since joining MSE just one month ago I have undertaken a complete change in my approach to my finances. Instead of dithering about whether I should pay off my mortgage, pay into investments, get a better paid job, stay in my safe but underpaid job, etc, etc, I have decided to grasp the mettle, make a financial decision and stick with it through to the (hopefully not bitter) end!

With that in mind I have decided to pursue a strategy that I hope will result in me having paid my mortgage off in three years. I will also not neglect my pension contributions and will ensure that I have sufficient ready cash in reserve as 'rainy day' money.

I have worked like mad to get enough money to pay off my credit card debts and will have paid them all off at the end of this month. I have also restructured my finances so that I have a new 3 year discounted mortage (hence the quest's 3 year time limit), have cashed in my crappy endowment and will pay this onto the interest only portion of my mortgage as soon as the money arrives, have set up a stakeholder pension and have sorted out life cover for me and Mrs Dither. The biggest change of all though is that I have given up my job and started working as a contractor - I'm doing the same job (payroll) but now working for my own limited company.

That's enough of the history, here are some figures:

Repayment Portion of Mortgage: £112980.80
Interest Only Portion of Mortgage: £37000.00
Total Mortgage Amount: £149,980.80
Offset Account: 0
Endowment Surrender Value: 10,658.04

Therefore my outstanding mortgage is currently: £139,322.76. To pay this off in 3 years will require an average monthly repayment of £3862.92 (gulp). This value does not include the mortgage interest or our other household payments, which amount to a further £2600.00. I therefore need my new company to bring in an average NET monthly income of £6462.92. :eek: Jeepers!

EDIT: Actually the repayments won't be this harsh because as I overpay, the amount I'm paying in interest goes down, meaning more money is ploughed into the actual capital, futher reducing the interest payments in a beautiful compounding repayment spiral !!

It's going to be a wild ride, but by 23rd March 2010 I will be mortgage free!

alfiesmum

The very best of luck with this. We're starting out on something similar, but with a much longer time scale, although also based on the fixed rate term of our mortgage. Will watch this thread with interest at how you''re getting on.

alias7

YEah, good luck!

Floxxie

I shall be watching this thread with great interest! Perhaps you need to change your name...not so much dithering now.


Good luck

lic

I am trying to do thesame, but with daughter's school fees have given myself to 2013.
Good luck.

susieb

Good luck, I am aiming to pay mine off in 10 years

SloppySaver

I'll be very interested in following this thread over the next 3 years. I suspect though that once your business starts bringing in that sort of cash each month, the temptation to get a new car, plasma tv, holidays and other trappings of wealth will be too much.

I guess though that even if you fail and pay off only half your mortgage after 3 years you still win.

Scully's_Girl

That is an amazing goal! The very best of luck to you. Please keep us updated on your progress. We're here to help every step of the way. I definately agree with Sloppy Saver though, you'll need to hold back on cravings for luxuries, although with all that work you might need a holiday.

full-time-mum

Wow - that's some challenge - good luck - hope your company brings in that kinda dosh.
What is Dithering Mum (soo much nicer than Mrs Dither don't you think) doing towards this?

angelavdavis

Good luck.

I am paying off my debts at the moment, but have a similar dream so am keen to see how it goes.

MUSTBEFUNNY_2

Good Luck dithering Dad...Not so dithering after all:money: