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

Dithering_Dad

Hi Everyone, thanks for your support (and words of warnings!) both on here and in PMs. I've changed my signature to show details of the quest - my old one had my credit card debts & DFS sofa loan but as these will be gone next week, I decided to update it for my new challenge. I also thought I'd add a bit of background about why I have 3 mortgage loans detailed on my signature:

The first mortgage was an Interest Only loan that I took out on my first house, I had advice from an IFA who told me to use an endowment vehicle to pay off the mortgage. Well, we all know how good that advice was! :mad:

The second loan was used to buy my current property. This time I took out a repayment mortgage (I had learned my lesson). My mortgage lender created two accounts, one for the original interest only loan, and one for the new house loan.

The third loan was taken out to pay for home improvements. We had a lot of land at the back of the house and a tiny dining room at the front of the house so we extended from the kitchen to make a dining/family room that stretches across the entire rear of the house. It was rather pricey because we have underfloor heating, granite worktops, solid wood units and a huge folding door that opens the entire width of the extension allowing access into the garden :cool: (my pride and joy!). This is a repayment mortgage also.

All my mortgage loans are with the same provider but split into 3 accounts. This is nice because it will allow me to do the repayments in bite sized pieces. So instead of trying to repay a daunting 150k mortgage, I am actually just repaying a 37K mortgage (then a 48k, then a 65k).

As I am self-employed, initially I will be putting a lot of my money into the offset, this is to make sure that during "dry spells" where I don't have a contract I will have money to keep up ticking over until more work arrives. Once the offset holds enough "emergency" money, I'll then move onto the Interest Only mortgage.

I decided to start on the interest only loan first as this is where I am the most financially exposed. My endowment should have covered this but fell short and I now I've cashed it in I have no vehicle to pay this off. _pale_

My first company invoice has been paid and the money will be in my business account on Monday. Next week will be spent moving cash around and paying debts but hopfully I'll be able to update my signature by the end of the week with some positive figures

Thanks again for your messages of support. I hope this thread will be of interest to people!

slowlyfading

You sound so determined and everything is carefully planned, which will help you Good luck!
Nicola x

catriona79

Amazing, Dithering Dad - what a challenge! I will definitely be lurking on this thread! Good luck to you.
c

alanobrien

Sounds very impressive but remember to live a little over the time frame it takes you to get rid of the mortgage.

Best of luck with it.

trish06

:T good luck :beer:

Daddyto3

Your talking paying off £4k ++ a month, but if you think you can do it, wish you all the luck in the world!

GO FOR IT !

Daddy (another one!)

pepperjulie

Wow.. I wish you the very best of luck in your quest. I shall be following it closely.
:T

Little_Miss_Winner

Yes, i shall be following it closely too!

TallGirl

What a great chalenge you have set yourself. I wish you all the best of luck and I shall be rooting for you too. I have £46,000 left to pay and are set to clear that in 4 years and 8month. However I want to do it before i am 40 which is 3 and 1.2 years.
I just wanted to remind you to sign up for Quidco and you will get money for changing car/house insurance and Pigsback where you get vouchers. It does take a bit of time but maybe your wife could have a look at that. If you look in my signature you can see how well we have done since finding MSE.
Good luck I am sure you will do it.

Dithering_Dad

Just a minor update.

1) I contacted my lender today and got the exact outstanding balances for my mortgage accounts (signature updated) and asked them to increase my mortgage by £66 to include the money I used to pay into my endowment. I also asked them to keep the repayment amount at this new level even when my new mortgage kicks in and the actual repayments drop. This means I'll be overpaying quite a bit without any change to my usual monthly outgoings.

2) I paid 2k onto my offset.

3) I phoned my business bank and discovered my invoice had been paid (hurrah! ). I now need to do some paperwork to determine how much of it is mine and how much of it is the tax man's (hurroo! ).

Will hopefully have a more interesting update once I decypher the complexities of Flat Rate VAT & Corporation Tax and when my endowment cash finally arrives!

EDIT (27 Mar): Just remembered, the bloke I got my mortgage figures from told me that during the 3 years discounted period, if I pay off any of the 3 mortgage account completely I will have to pay a redemption charge, even though I would still have a hefty mortgage with them. He advised me to keep £1 in each account until after the 3 year period lapses and then I won't pick up a charge. Phew!