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

setmefree2

Handing over tax as a lump must be hard. Under PAYE you never feel like you get it in the first place and secondly it goes out in smaller amounts so you don't notice it quite so much:rolleyes: Good Luck.:T

angelavdavis

Dithering_Dad wrote: »

Gah! I've just had to pay almost 16k in tax. I did a bank transfer to the IR sort code/bank account just now and had a seriously difficult time clicking on the "Make Payment" button.

I've now depleted nearly all of my savings and I'm out of my financial comfort zone. Luckily I still have a few months left on my current contract so I will be spending the next couple of months salting money away again. I doubt I'll be able to overpay much on the mortgage for a while .

I have to put away about 18k for my next tax payment in January :eek: so I'll be hoping that my current contract will get at least a 3 month extension to get me into the New Year. Luckily, my client seems to be mooting additional work, so fingers crossed!

Know the feeling DD I share your angst (having watched my offset be wiped out with one fell swoop!!)

setmefree2

One of these days we will have to replace our aging car - that's gonna to hurt too:rolleyes:

Dithering_Dad

Quick update. I've now reduced the Interest Only part of my mortgage by a further £4k. I made a £2k overpayment a month ago and made a second £2k overpayment yesterday. My Interest Only balance now stands at £2013.25.

I really have an incentive to try and save every penny between now and the New Year to try and pay this off completely. Well, pay it down to £1 anyway because if I pay it all off I'll be hit with a redemption penalty.

I can't wait to have the Interest Only part of my signature with a line through it .

Once I've paid off my Interest Only mortgage, I'll make a start on that durned extension. My next big target will be to have paid off 1/3rd of my original mortgage balance!!

sallyb17

Great news, DD. You've done so well. It will feel marvellous to have either £1 or £0 in the IO account :beer:

Dithering_Dad

Thanks Sally!

There will be £1 left, but if no one minds I'll put a cross through the Interest Only account anyway, even though it's not strictly cleared yet.

I feel really energised by (almost) hitting this goal. It's quite tough doing a mortgage free challenge because the numbers are so large and so nothing much really happens for an awful long time. It's great therefore to have small-ish milestones to aim at and my current £2012.25 goal is certainly achieveable within the next couple of months or so, especially given the latest interest rate cuts.

Dithering_Dad

Well I finally paid off the Interest Only part of my mortgage! I'm now set to start on phase 2 of my MFW quest, and will be overpaying the home extension loan I took out to pay for a new fitted kitchen and an extension.

I'm just about to finish my current contract, which caused a certain amount of concern epecially given that we are now in recession. Luckily a former customer of mine contacted me to see if I would be available for a short-term project. They offered more money than I have ever earned (£800 per day) and so I grudgingly accepted . The new project starts immediately after my current one ends, so I'm really chuffed about it. I'll have work now until the start of April.

I've once again depleted my mortgage offset savings to pay my tax bill, and so top priority will be to fill that back up in time for tax bill part 2 in July. Once this is done, I'll be putting as much as possible onto the extension loan.

It'll be a real achievement if I can get rid of the home extension loan before I finish the Mortgage Free in Three challenge. I'll not be mortgage free, but I will have halved it and taken it down to a much more comfortable level.

abouttimetoo

You are doin great DD :j I bet it was a lovely moment when you did the 'strike through' on that part of your signature

StuartGMC

DD
Well done on that progress and proof that sometimes luck does come our way with that fortuitous timing on the new contract.

None of us are totally secure but contracting I guess can be one area where cut-backs are made initially in recession, but then, it can of course come good again in cases where "right-sizing" left the company bereft of requisite skills for specific items, so I hope you'll get something in April in the new fiscal year to take you onwards.

Best wishes.

setmefree2

Good News DD:D