Pay off my mortgage in 5 years

buzzyzoe

So I've made an overpayment this month and I'm now at £47995 so have officially paid off £25000 since I took out the mortgage in 2014, which is a very good feeling!

I should be fine for the next few months but my current contract is due to end late November, so if I can't get another job to fill the gap before Christmas, then January might be a lean month. I get paid in arrears both at this job and from my last job, so because of holiday pay, I should be able to basically 'push' all my earnings back so I am covered up until Christmas but not beyond. Hopefully I will be able to get another job in between this job finishing and Christmas though!

I've been doing well on spending hardly anything, have had awful food poisoning this weekend so haven't even left the house! It's been horrible but haven't spent a single penny, so every cloud and all that

lippy1923

Just read through your diary. You are doing great. Seems like you will smash your original target of 5 years! Keep going

daisy_1571

Hi buzzyzoe :wave:

Just popping in to say well done for thinking the way you do at your age. There's a saying that goes something like - keep doing now what others won't so that later on you can do what they can't. Keep that in mind if friends can't understand what you are doing this for.

Well done and keep going, your doing great

Daisy xx

Maximum_Saving

Hello. Looking through your diary I think you are doing very well. It is excellent that you are using 5 years to pay off so very much of your mortgage. I am also trying to pay off my mortgage. I pay a direct debit amount and then pay my overpayments later in the month. Right now I owe around £16,000. Good luck.

AnotherJoe

Just to be pedantic, and not to take away from your achievements, but you've got to pay off more than £11,386 you calculated. You forgot the interest.

Also, you should be considering pension payments. Do you have one? With current low interest rates, paying into a pension is often a much better bet. Even if you are a low rate tax payer odds are its better, high rate its pretty much a slam dunk.

If you are young, the money you put into a pension now will have a long time to grow. Paying off your mortgage will have much less impact long term.

buzzyzoe

Thanks for all the nice comments everyone! Having a diary has helped with keeping the old motivation up for sure.

AnotherJoe, I haven't included the interest but for me it is calculated and added on daily, so I am paying it off as I go. I figure the quicker I can pay it off, the less interest I will pay so this is why I haven't included it in my calculations, but I am aware of it. Also my interest rate is only 1.59% so I'm only paying a pound or so per day in interest. I should hopefully pay less than £5000 in interest across the remainder of the mortgage

I have about 17 pensions already but they're all worth about £5 each. I work in TV so tend to do contracts that are about 6 months long (ie by the time I am enrolled in the pension system, I normally pay in once and then leave the job) so for me it's not worth it at all. My plan for a pension is investment property, and by far the fastest way to get this is to become mortgage free on the property I currently live in. I can then save a deposit for a new property and eventually rent out my current flat as a BTL (which will be far easier with no mortgage). For me BTL is ideal as it provides a monthly income but can also be sold off to provide a large capital sum if needed.

buzzyzoe

I'm now below £45000! £44936.53 to be exact. I have made a couple of decent overpayments over the last 2 months.

It's now looking like my current job will keep me on into next year, which is good as it means I won't have a gap before Christmas, but they are also probably going to make me use my holiday allowance where I would much prefer to just work straight through.

Kittenkirst

Fantastic movement on the mortgage, well done!
Good news on the job front too, not great re holiday allowance but great to have a longer position

buzzyzoe

December's overpayment made and now down to £43200.

Some more news on the job front - I have been offered another job to start in the new year which would be a step up and should be quite a bit more money. HOWEVER the series hasn't been commissioned officially yet and I need to give notice on this job before I will find out whether it gets the green light so it's a bit of a risk! But I think it's a risk worth taking.

Hopefully in January I will be able to report that I'm doing this new job and haven't ended up unemployed but we'll see!

buzzyzoe

Another £1300 overpayment made - by March I should be under £40000 which will be another big milestone

In terms of jobs, I'm doing 2 weeks handover on my old job so I've got 2 weeks until I need to panic! The new series is going to be commissioned but most likely won't be starting until March so I've been looking for filler jobs for a month or so to try and fill the gap. I have a chat next week so hopefully that will come through!