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

AnW'sMum

Morning Groatie

I see no reason why you couldn't join in the challenge as to my mind any extra amount paid off the mortgage makes you all winnersin true MSE style and I am sure DD will agree (after all it was his idea to start the thread)

In a quest like this I think the mutual support given on here will help enormously.

Kaz2904

Done Mays budget and as long as DH brings home £921.42 we will be able to overpay £3.40 to my Mum's loan, have normal mortgage payment of £1233.85 and repay £581.48 from the borrowed savings. This should repay them by the time we go on holiday at the end of August.
The £3.40 doesn't make a huge difference to the snowball but I hope that by sticking to the £10 a week challenge then we will start to see a difference after a few months!

wisewoman

ThankYouAndEnjoy! wrote: »

:j IM THE PROUD FATHER OF A BEAUTIFUL BABY BOY :j

Weighed in a 5 pound 13 ounces, mother and baby are doing really well. Mummy had no pain relief; she was a star!!

Decided to call baby Charlie.


Thanks to everyone who posted with their best wishes!

Oh such a joyous posting!! Welcome to Charlie ThankYouAndEnjoy. How wonderful that a baby has been born on this quest. This is what life is all about, and I'm sure DD would agree that our children are the reasons for it all.
I'm all emotional and glassy eyed.
Welcome to Groatie Queen, fellow Scot. I assume the name is based on the old Scottish fourpence...nice one.

wisewoman

We're still trying to sign off with our mortgage. Our building society have not received the funds from our endowment supplier, and the endowment supplier say they have written twice to the building society to request them. Each one is blaming the other (surprise!) and it looks like we'll have to make an extra month's payment, on top of a two week extra payment already made, while they dilly and dally. Their incompetence has robbed us of all the fun of the final payment. I have spent ages on the phone trying to chivvy each one along. I anticipated balloons and trumpets and even the Chippendales (not really) but it's all stress, stress, stress!

Kaz2904

I'm so sorry I completely forget to say congratulations TYAE. I went toddling off to tell DH all about it and he then proceded to tell me just how sad I am!
So cheers :beer: and have some matchsticks!

groatie_queen

Thank you wisewoman for your welcome and your kind words.

Yes, the groatie is an ancient Scottish coin, and is also the name for the tiny cowrie shells that can occasionally be found on some Scottish beaches, if you're both observant and lucky..... or if (as in my case) you've got a kindly grandfather dropping a few for his young grandchildren to find!

They resemble a fat barley groat, and hence the name. They were considered to be very lucky by fishermen, who called them groatie buckies, and my family has a long tradition going back to my great grandfather, of hunting for them - many happy hous on various beaches particularly at Carnoustie and Westhaven. So I chose groatie both for the fiscal and the family link!

I'm sorry your final release from your mortgage has been marred by the admin snarl-ups, and I hope they're resolved soon.

Best wishes to all
GQ

comping_cat

Forgot to post this the other day - but good luck to all those aiming to pay their mortgages off in 3 years, i would love to join you, but know that in my situation 3 years is impossible, but i am aiming for 10 years (if not before)!!!

Dithering_Dad

I've just run my mortgage figures through this overpayment calculator:
http://www.themoneypages.com/apps/calculators/fleximortgage.asp

and received the following results:

Overpayment Calculator
Loan Amount: £138000
Interest Rate: 5.3%
Loan Period: 22 Years
Overpayments: £3213.57

Monthly Payment/New Monthly Payment
Repayment: £886.43 / £4100.00
Total Payment: £234018.03 / £149732.43
Term: 22 Yrs / 3 Yrs

How much can I save?
Saved Years: 19
Saved Amount: £84285.60

I'm currently paying £1100 on my mortgage (including overpayments) and £3000 per month into the offset, so based on these figures if I can sustain this over 3 yrs I will be able to achieve the mortgage free in three challenge!!

I will have to increase my overpayments in line with any interest rate increases, but things are looking good!

The overpayment calculator says I'll be saving £84285.60, but that is based on my discounted rate of 5.3%, so the actual savings should be much higher! Boy am I ever glad that I found MSE!!!

Dithering_Dad

I've created another thread for the "Mortgage Free in Three" Challenge because it was all getting lost in this thread!!!

Galster

Dithering_Dad wrote: »

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!

Hi mate,

Excellent initiative this is. I decided back in March to whittle away my mortgage, although don't know if it's too late to join the challenge ?

Basically I have no unsecured debt but had 120k left to pay in March 2007 and started with the following..

● Cashed in my endowment from previous property and paid £12k of the 16k I received onto my repayment mortgage in March 2007 (10% allowance)
● Paid another lump sum of 10k into my mortgage in April 2007 (10% allowance again in the new mortage year) 100k outstanding approx.
● Increased my monthly savings plan to 1k per month to include the reduction in the mortgage repayments and the endowment payment into my high interest account which will then allow a 12k overpayment next April and ongoing (once I'm out of the discounted rate restriction).
● Arranged cheaper mortgage life assurance and redundancy cover.
● Making lifestyle changes such as making own lunches, reducing Sky subscription etc.