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

rssteve

can't see this goal happening in 3 years. Unless your on like 100k plus a year or something?

Troubleatmill_2

rssteve wrote: »

can't see this goal happening in 3 years. Unless your on like 100k plus a year or something?

and the rest......

Although you need to be in the top 1%? of earners to be able to do this. It is an exciting challenge - and according to the OP - he should have the income to do this.


Personally, if I was in the OP's shoes.... I would try for clearing the mortgage in 5-7 years thus skipping the bread and water parties I'd be having every day. 3 Years is really really aggresive for that amount of money outstanding..regardless of how much you earn.

But best wishes to the OP - Hope things work out for him.
Best
T

Miss_Penny_Pincher_2

doitmyself wrote: »

I thnk our friend here, - hi DD, is gonna struggle I really do. Nothing wrong with the maths but I haven't understood what the motive, beyond being debt-free for it's own sake is? ... Sorry DD I'm sure you've spelled it out here somewhere but why exactly are you doing this?

Hi doitmyself - I think DDs main motivation is out of love for his family...

Dithering_Dad wrote:

One of my main motivations for the POYM is so that when the time comes, we can afford to send our little one to private school. We want her to have as many educational advantages as we can possibly give her. Dithering Mum also spends a lot of time teaching 'lil one to count, read etc.

I'm actually starting to fill up at the thought of my special girls, so will leave it there.

My reasons are also for family reasons and to have the financial freedom to be able to work part time

Dithering_Dad

Hi again, I've been moving money about and so thought I'd do an update and respond to some of the posts.

Little_Miss_Magic wrote: »

...i was wondering do you think that you will be able to Net nearly £6.5k every month for the next 3 years?
That is a hell of a lot of money to achieve?

Hi LMM, I think you've made the same mistake I did when I originally did the monthly calculations - divided the whole mortgage by 36 months. This doesn't work correctly because it doesn't take into account compounding. So each month if I overpay a few thousand, but keep the mormal mortage payment the same, the interest I would have paid is instead ploughed back onto the mortgage. I used an online mortgage payment planner and will have to pay 3.2k per month to pay off my mortgage. This is still a lot, but not 6.5k which would be a bit of a strain!!

doitmyself wrote: »

Nothing wrong with the maths but I haven't understood what the motive, beyond being debt-free for it's own sake is?
To voluntarily consign oneself to 3 years misery for no perceptible result is clearly pointless. Sorry DD I'm sure you've spelled it out here somewhere but why exactly are you doing this?

There are a number of motives such as being able to afford private school for my little one, being able to go back to my nice low paid but safe job, to perhaps even go to uni and retrain for another career. We won't be miserable though, we're not watching every penny and staying in every night - that's not what MSE is all about. We will just make sure that whatever we buy we get the best deal possible.

Catlin wrote:

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!

And don't forget NI and Income Tax. I hope you have arranged a good accountant, you may need advice on what expenses you can claim for.
Good Luck.

I've got a really good accountant, so all this is in hand. I am only paying myself minimum wage (as far as income tax and NI are concerned) the rest is paid as dividends which just cop for income tax.

rssteve wrote:

can't see this goal happening in 3 years. Unless your on like 100k plus a year or something?

Due to overtime (which I wouldn't normally be asked to do, but luckily there was a rush on), I billed over £16k for the month. Out of this I have to pay expenses, VAT (but I bill at 17.5% and pay to the government 12% as part of the flat rate scheme) and corporation tax (19%) and some PAYE/NI (I am "paid" £920 per month) and then tax on my dividends. I made quiote a bit of money from this month, hence the sudden elimination of all my credit card debts and DFS sofa loans.

I sometimes feel like I've won the lottery when I put my invoice in at the end of the month. My life has completely changed and instead of working in a low paid government job I do the same job but get paid several times more. The downside is that I am a temporary employee so will have periods without work, that I am away all week so miss my family and that I have more responsibility (this may not be such a bad thing really because I'm finding my job a little more interesting now).

EDIT: oops, I forgot to add my update. I have transferred £10700 of my cashed-in endowment onto my interest only account and have put a further 3k into my offset. I'm still working out my tax liabilities so will hopefully be able to put some more into the offset before the end of this month.

imoneyop

Dithering_Dad wrote: »

I used an online mortgage payment planner and will have to pay 3.2k per month to pay off my mortgage. This is still a lot, but not 6.5k which would be a bit of a strain!!

Hi DD,

I'd be interested to know the URL of the payment planner that you used.

Dithering_Dad

One of the strange quirks I find with the internet is that when I'm not really looking for something I find useful stuff but when I am actually searching for something specific, can I find it?? Grr. When I was idly browsing the internet for mortgage information, the overpayment calculator it was one of the first to come up on the google results, naturally now I'm searching for the specific one, I can't find the bloody thing!

However I'm sure there are plenty on the internet but I liked that one because it it allowed you to put in the principle amount, which in my case is £139023.30 (I always knew that I'd be cashing in my endowment during the first month of the quest) for 36 months with interest calculated at a daily rate. It came to approximately £3200 overpayment per month (this is an additonal payment on top of what I already pay on my mortgage - I don't think I made that clear on my post).

Edited to correct all my spellings and poor use of the English language!!

Kaz2904

I don't know if you have done this on purpose but in your sig you haven't knocked off any of your normal monthly payments for the mortgage(s). Sorry if I'm wrong.

Dithering_Dad

Kaz2904 wrote: »

I don't know if you have done this on purpose but in your sig you haven't knocked off any of your normal monthly payments for the mortgage(s). Sorry if I'm wrong.

Hi Kaz. You're not wrong - my mortgage doesn't get paid until the 15th of the month and I started the thread on the 22nd March so have not yet made a normal repayment.

I've just realised that in the 15 days that this thread has been going I have paid (including offset) £15,700 off my mortgage. Wouldn't it be lovely if I could sustain a £1000/day payment for the rest of the quest?

savingforoz

That's great DD :beer: ! You are a great inspiration. Dithering Mum must be very proud of you. I look forward to reading more of your wonderful thread :T .

bobsa1

OP can I ask how you got started in your own business as I'm looking to do a similar type of business.

Mnay thanks