The Mortgage Free in Three - Take 5 challenge (MFiT-T5)

Suffolk_lass

Taka, you could separate the things that happen before you receive your net pay (ie your workplace pension) from your disposable income and then use the annual statements re your pension and your SP forecast to run a forward look spreadsheet of your future income.

I do this and combine it with a budget spreadsheet that includes all the annual and monthly commitment payments, averaged out (and with anything that stops when I stop work, highlighted - commuting, work clothes, national insurance). Then I know what I have left for over-payments of mortgage, housekeeping and holidays (other debts have gone) and what I will need when fully retired. - I count anything I scrape out of the disposable pot as savings, using the "Save £12K in 2019" thread to keep a count - then when my cash pot exceeds my cash emergency fund target, I OP the mortgage (at least once a month now), and also keep the payment rounded up so it OPs a bit more without me noticing.

It works for me but it does effectively double count savings and OPs. I think I am addicted to the little targets and need the different ones to maintain my motivation. That includes my Grocery Shopping where I have been tracking since 2009 over on the Old Style thread

taka

Right, after a spending half of last evening (rock & roll Saturday evening me! :rotfl:) constructing the spreadsheet from hell _pale_, I think I am in for 25k! I'm also going to count the 3 calendar years 2019-21 for this challenge as it makes my spreadsheet tracking a much, much easier.

This 25k is made up of...

1. Mortgage = drop it from 10k to 5k. Most of this will be due to my regular payments but will also need OPs of £582/yr. I'm in the 2019 MFW for £500 anyway so this will continue.
2. S&S ISA = Add £200/month (£7200 over the 3 years).
3. Voluntarily adding to the DC part of my work pension via salary sacrifice = ~£12.5k in total over the 3 years.
4. ~£300 extra to one of the above to bring it to £25k

Hopefully it is possible! It rather depends on...
a) having my work contract renewed past the end of 2019,
b) my DB/DC hybrid work pension scheme + employers representatives + unions actually agreeing to something... :eek: :wall: and the costs to me aren't higher than the "cost sharing" increases already announced (and factored into my spreadsheet).
c) I need to (finally!) learn to drive, pass my test, and buy/insure/run a car during the challenge so god knows how that will affect my budget and eat up my spare cash!
d) me getting my big pants on and actually opening a S&S ISA! :rotfl:

stoplurking

Hello
I would like to try this challenge if I may please? I have sent a registration form and my aim is to reduce my £26k+ mortgage to £5k -I think that's what I put on the form!
It may be a few months before I can start overpaying as I have a loan to clear first, but my regular payments will at least bring it down a bit.
Thank you for running the challenge Trix-a-belle.

crv1963

Hi Trix-a-belle, can I join the challenge please? I've submitted my form thinking I need a long term challenge to reduce the mortgage from 85k to 50k over the 3 years.

Along with that is the need to build Mrs CRV pension pot from 96k to 140k and clear some debts, which although manageable servicing them is a drag on savings rate!

trix-a-belle

challenger numbers all up to date, am just in the middle of some deadlines at the moment so will do the final chart for T4 and opening stats for T5 in a week or so

another £850 overpayment made today from a regular saver which has matured, trying to get ahead while I can.

miss_undastood

Hi. Am I too late to join?

My mortgage was big mortgage was 200k at the start of the year

I’ve made my maximum overpayment until September

I want to be around the 120k mark by the time my fix ends in 2023, so I think I’m looking at 140k in 3 years from now (plus my other smaller mortgage)

trix-a-belle

miss_undastood wrote: »

Hi. Am I too late to join?

My mortgage was big mortgage was 200k at the start of the year

I’ve made my maximum overpayment until September

I want to be around the 120k mark by the time my fix ends in 2023, so I think I’m looking at 140k in 3 years from now (plus my other smaller mortgage)

Definitely not mis undastood please pop a joining form through from the link in the first post

trix-a-belle

So, starting stats...
The collective aims are to reduce mortgages/increase savings by more than £2,125,000 from a starting figure of nearly £5,240,000
LuihutOz has the biggest target of paying off AUS $120,000

So lets give it our best shot
Anyone got any tips they want to share of bits and pieces they have been doing to help work on their target?

pinknsparkly

Eeeeeep, let's get this show on the road! That's a crazy sum of money Trix, fingers crossed we can all do it!

And taka - I'm taking a similar approach to you. I've rounded up my monthly mortgage payments so I'm making an OP of £12 something (megabucks, I know!) and then any "random" extra money I have is sent to the mortgage as OPs too (such as topcashback payouts, interest in my Tesco current accounts, money earned from selling junk etc). Then I am also intending to make £6000/year "OPs" into a stocks and shares ISA in the hope that I earn more in there than I pay on my mortgage. I am also in the save £12k in 2019 and the bulk of this will be mine and my husbands LISAs, which will also be in stocks and shares (£8k + £2k bonus), the rest into another stocks and shares ISA (probably in my husbands name so we end up approximately equal). So whilst my "true" mortgage OPs won't be anything close to the £30,000 I've registered for I am viewing the stocks and shares ISA as being a mortgage off-set pot if you will. And there's always a strong possibility that I'll change my mind again before the end of the challenge (I certainly intended to throw every spare penny I had at my mortgage when I signed up for this in January!)

inigma

Those numbers just blow my mind, we are just a fraction of a % of mortgaged people and the number is huge, it makes you realise just how much money is floating around out there. It makes me want to clear all of mine now.