How to be mortgage free after 8 years

ds1980

gocraig wrote:

This guy earns a lot of cash, and he has £700k equity, and he pays £2k a month extra, well done to him, dont knock him for it or the amounts involved, its the principle that is involved that is important.

I dont eant nearly that much, I dont have nearly that much equity, but I have a mortgage of a similar size and in addition to my £1500 a month repayment that would clear my mortgage in 14 years, I am aiming to pay an additional £1000 a month to clear it in 8.

Still large numbers to some people I know, but it is relative. If you earn £15k a year you are likely to have a mortgage of no more than £50k and capital repayments of £350 over 25 years. If you could find an additional £50 a month, you would reduce your term from 25 to 17 years. Cant afford that, an extra fiver a month, would knock a year off the term !!!

Dont knock the advice simply because the numbers seem out of reach. Its the principle that counts.

Excellent post mate,

I think the reason why we can be successful is because there are so many people with that attitude therefore more chance for me to make money. If everyone thought they could do what i do then i wouldn't be doing it! Congrats on your situation. Looks like youve got your head screwed on. Its good that everyone is different and i understand that everyone has different priorities mine at the moment is to make money but once things start to turn (research research research) I will change my position and look to consolidate or find something else. Hopefully by then Ill be in an even better position and can spread risk further and further.

TomBxx_2

InMyDreams wrote:

But as a student income, isn't that tax free? Ie equivalent to if one of you was earning over £30K. If so, then I think we're in similar financial positions. £22K is about my dh's take home pay, but have to admit that on top there's also child benefit (for three children for whom I'm currently a SAHM for), some tax credits, and also about another £2.5K from tutoring I do in the evenings. Presumiably as students though, you also get other perks such as no council tax, free prescriptions, subsidised transport etc. That £22K is starting to look like quite a decent family income!

Unfortunately student income is subject to the same tax brackets as anybody else, it's just that students rarely earn enough to reach the income tax brackets. If a student earns £22k per year, this will be subject to the same tax as a non-student earnign £22k per year.

TomBxx_2

Pauper_Princess wrote:

Thefunkygibbons

Don't know if you ever post in here any more, but I'll take a shot anyway!

Read your thread with interest... you're a chartered accountant? I could DESPERATELY use some advice before next Tuesday, if you have time? It's only work-related, nothing exciting :rolleyes:

Many thanks if you read this in time and can help

Hi,

I'm a Chartered Accountant and willing to advise if relatively straight forward - just PM me if not too late.

Rachman_2

ds1980 wrote:

Hopefully by then Ill be in an even better position and can spread risk further and further.

DS, I worked out there is far less risk in me being paid my wages by someone else than me earning my own crust - certainly at this time, plus I am lucky enough that they don't pay me 'badly' - so I'd have to be making 'silly' (what I call silly does not matter - everyone has their own idea, but the point's the same) money to take that 'security' away - as it is, it allows me to pay back a multiple of my scheduled mortgage capital repayment each month and that's what I think is safe for me (by my calcs, by the time we've paid off the mortgage, only 14% of the total repaid will have been interest repayments) - and it's easier for me to sleep at night knowing my pay cheque will be there come the end of the month and it's enough to work within my 'plan' - now if you took a large chunk of my wages out, I'd be off like a shot and speculating/investing in all sorts - not just property and equities - I like my private equity investments and my leveraged buyouts and I quite like the idea of getting into it in an investment way rather than just as a 'professional' (whch I am currently mostly prohibited to do).... but at the moment, it's better to be where I am (IMO).

painted_lady

Remember though people, its all proportionate.
Work hard and use your head is the message.
Good luck to you.

ds1980

Rachman wrote:

DS, I worked out there is far less risk in me being paid my wages by someone else than me earning my own crust - certainly at this time, plus I am lucky enough that they don't pay me 'badly' - so I'd have to be making 'silly' (what I call silly does not matter - everyone has their own idea, but the point's the same) money to take that 'security' away - as it is, it allows me to pay back a multiple of my scheduled mortgage capital repayment each month and that's what I think is safe for me (by my calcs, by the time we've paid off the mortgage, only 14% of the total repaid will have been interest repayments) - and it's easier for me to sleep at night knowing my pay cheque will be there come the end of the month and it's enough to work within my 'plan' - now if you took a large chunk of my wages out, I'd be off like a shot and speculating/investing in all sorts - not just property and equities - I like my private equity investments and my leveraged buyouts and I quite like the idea of getting into it in an investment way rather than just as a 'professional' (whch I am currently mostly prohibited to do).... but at the moment, it's better to be where I am (IMO).

yeh but i do what you do and have someone else pay my wages and earn my own crust. Id have to look it up but leveraged buyouts occur through borrowed money in general so if your borrowing to buy your doing exactly the same?

i would always hold down my own job all the rest as i see it is pocket money. Like i said i aint stupid but people do like to presume.

if everyone knew what i did then i would nt be well off id be normal. Good for me they dont. Im not big headed just know how to gets things done and the reason why i do is purely for my families security in my life and hopefully my future childrens in theirs also.

andy6412

I think people with mortgages need to put some thing away for house maintenance, why not make overpayment's and if the worst happens you can have your funds back like a reserve fund.
I try and make overpayments each month as i love seeing my mortgage go down, rather than boozing any time.

Thefunkygibbons

Thread still going?

I have not be in a lot

I lost my job in November last year so Money saving for real

Not having to worry about the mortgage was a real life saver, otherwise I would have been forced back to work already rather than taking the time to find the right job

comping_cat

Sorry to hear about your job loss TFG, but like you said, luckily not having your mortgage has helped - even more encouragement for me to keep plugging away at paying mine off!!!!

Sloppy_Saver

Good luck with the job hunt!