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

in Mortgage-free wannabe
322 replies 65.5K views
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!
Mortgage Free in 3 Years (Apr 2007 / Currently / Δ Difference)
[strike]● Interest Only Pt: £36,924.12 / £ - - - - 1.00 / Δ £36,923.12[/strike] - Paid off! Yay!! :)
● Home Extension: £48,468.07 / £44,435.42 / Δ £4032.65
● Repayment Part: £64,331.11 / £59,877.15 / Δ £4453.96
Total Mortgage Debt: £149,723.30 / £104,313.57 / Δ £45,409.73


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