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

chunky79

Hi Dithering Dad

Firstly thanks for the PM earlier.

secondly, I am sick to death of people telling me how stupid we are to overpay our mortgage, friends as well. I see it as a blooming good idea and a sensible thing to do. Do i go around telling others they should overpay because i think it is good idea.

The plan for us is to really over pay this year if OH is out of contracting then no worries i can cover the mortgage with my wage!

I also just read about you finishing contracting, i am sure it was a hard choice to make financially but family does come first which is why you did it in the first place! OH works away 4 days a week, its been tough with 4 kids but has given us a good stepping stone to live a better life! Once this contract is over he won't be working away again not for a few years thats for sure.

gallygirl

chunky79 wrote: »

secondly, I am sick to death of people telling me how stupid we are to overpay our mortgage, friends as well. I see it as a blooming good idea and a sensible thing to do. Do i go around telling others they should overpay because i think it is good idea.

Sorry Chunky, hate to tell you this but these same people will be telling us in a few (ahem!) years from now how 'lucky' we are to have no mortgage :rolleyes:. Still, sure we'll cope

Dithering_Dad

chunky79 wrote: »

Hi Dithering Dad

Firstly thanks for the PM earlier.

secondly, I am sick to death of people telling me how stupid we are to overpay our mortgage, friends as well. I see it as a blooming good idea and a sensible thing to do. Do i go around telling others they should overpay because i think it is good idea.

The plan for us is to really over pay this year if OH is out of contracting then no worries i can cover the mortgage with my wage!

I also just read about you finishing contracting, i am sure it was a hard choice to make financially but family does come first which is why you did it in the first place! OH works away 4 days a week, its been tough with 4 kids but has given us a good stepping stone to live a better life! Once this contract is over he won't be working away again not for a few years thats for sure.

Hi Chunky, we used contracting as our stepping stone and it has worked really well. Just make sure that you continue to live on a 'normal' income and stash away all the extra money that contracting brings in. You'll feel all the long-term benefits that way.

Dithering_Dad

The money is finally rolling in from my final contract, I received £16k for work I carried out in February, so I'm just waiting for a further £16k from March (to arrive in June) and then a final £6k for bits of work in April (to arrive in Aug). This means that I should be able to close down my company completely by the end of Aug and empty my company coffers.

I'm not sure how much tax I will have to pay yet, but I'm hoping a lot of it will be set at the entrepreneurs rate of 10%. If this is the case, then I'll go a long way to clearing my next current target, which is the home extension loan.

Normally, as I get paid for contracts, I take out a dividend and pay this straight onto the mortgage. So apart from the tax money that I put aside and my emergency money, I never really have a large amount of money saved up. This time, for tax reasons, I have to wait until all my money is in and build up a large amount of savings - which to be honest is completely burning a hole in my pocket!!! I've already considered buying a larger home, buying and renovating a shop, buying a new shape BMW Z4, and will no doubt have many other ideas as time goes by!!

Luckily though, I'm a sensible old soul and I'm pretty sure that I'll keep a grip and use the money to continue my mortgage blitz. Thank gooodness I have the Mortgage Free in Three challenge to keep me on the 'straight and narrow'.

If everything works out, I should finish the challenge with less than £60k left on my mortgage, nearly £100k in my pension pot (let's not forget that this was also an aim over the three years - it's currently standing at about £87k) and I'll have renovated the house.

Not so bad for three years of working hard, counting the pennies and making sure I don't get distracted by BMW Z4's!!

StuartGMC

Dithering_Dad wrote: »

Not so bad for three years of working hard, counting the pennies and making sure I don't get distracted by BMW Z4's!!

It sounds like the Z4 isn't that far off though.... well done on the excellent progress and your diary here which is testament to the ability of our threads to engender a great community and inspire others to have a go, especially when no one they know thinks it is sensible to clear down the DEBT of a mortgage!

Keep at it DD; have you chosen the colour of the Z4 yet, and more importantly explained to the rest of the household why they won't fit in it? :rotfl::rotfl:
(That's why I'm hoping to get OH to agree to the Jaguar XF; the XK would not be suited for the family!)

angelavdavis

Dithering_Dad wrote: »

This means that I should be able to close down my company completely by the end of Aug and empty my company coffers.

I'm not sure how much tax I will have to pay yet, but I'm hoping a lot of it will be set at the entrepreneurs rate of 10%.

I have just done this myself DD, and managed to get the 10% rate no problem with the corp tax.

Just doing the final zero VAT returns, etc to close off the paperwork.

Sounds like you made a move just in time, good for you.

Chunky - Ignore them, it is your choice and decision and none of their beeswax.

Like DD I switched to contracting and spent every penny on overpaying the mortgage.

We paid ours off last year thanks to motivation of the MFIT group on here and selling OH's bachelor pad.

Best thing we ever did - far less to worry about now and I am currently sunning myself tending the veg garden instead of flogging myself chasing work with companies that want to cash in on the increased workforce availability. I was also sick of travelling, so now I don't have to work, I can be choosey about what I do. I am currently volunteering for a charity - I do about two days per month!

setmefree2

well done DD :T

Dithering_Dad

angelavdavis wrote: »

We paid ours off last year thanks to motivation of the MFIT group on here and selling OH's bachelor pad.

Best thing we ever did - far less to worry about now and I am currently sunning myself tending the veg garden instead of flogging myself chasing work with companies that want to cash in on the increased workforce availability. I was also sick of travelling, so now I don't have to work, I can be choosey about what I do. I am currently volunteering for a charity - I do about two days per month!

Brilliant post angela and excellent motivation for me to continue paying off our mortgage - who wouldn't want to have an easier life with no debt worries?

A much better feeling of well being than I'd get from driving a Z4. Though thay do look amazing...

RosieTiger

Dithering_Dad wrote: »

A much better feeling of well being than I'd get from driving a Z4. Though thay do look amazing...

Yes, it's a man thing and great to see that DD and Stuart have the same wrangling going on in their heads as I do !

Mine does the Z4, XK, Porsche etc etc argument on a regular basis but I thought it was just me. Then the realism kicks in and I read the statements from George Jetson / Angela Davis about what being MF means on a daily basis and guess what - the car doesn't seem that important !

So - in a few years time, I am promising myself a ( insert current dream car at that stage, but can it be better than an XK I doubt it ) as soon as I am MF !

Mr RT

angelavdavis

OK, so we are all agreed that the new Z4 is great(!)

But, if its that versus my current lifestyle, I will have to stick with Shanks' pony in the sunshine!

The trouble (I have found historically) with forking out for lovely expensive goodies is that I have always ended up working all hours to pay for them and never have time to enjoy them!