What is Tomorrow.org.uk all about?

 Tomorrow.org.uk is the blog page and main site for a normal everyday guy who is looking to boost his income to help pay off his mortgage early.

Who is this Person?

Well he is me.

What’s his situation?

 3 years ago he moved house with his wife.  He was moving from a flat to a house but the sale of there flat fell through.  So they took out an additional mortgage so they could move and now have 2 properties each with a £140,000 mortgage on them.   Both mortgages are interest only, as the intention was to still sell the flat, however it didn’t turn out that way and the flat is now rented.

 What’s the task?

The total property value is estimated at £360,000 and the total mortgage at £280,000 giving an equity value of 22% and a total interest repayment of £1,250 per month. 

The Flat

I get £600 per month rent for the flat and with the housing market the way it is, I don’t think it is the right time to sell it.  In order to get the mortgage to repayment level I need to reduce it to £100,000 so my task here is to reduce the mortgage by £40,000.

The House

I would like to get to a position where I have at least 50% equity in the house currently the equity is around 33% (£70,000/£210,000) to get to 50% I need to increase the equity by £35,000 (£105,000/£210,000).

So the total task is to reduce the total value of the mortgages by £75,000.  For some people this may not seem like a lot but this is over twice my pre tax annual earnings.

How are you going to do it?

 A lot of it will come down to pure trial and error.  Over the last year or so I have cleared off my debts other than the mortgage so I’m starting with a fairly clean slate.

 I have prepared a budget and between my earnings and my wives we should be able to make additional payments each month to the mortgages.

 I need to also find ways of boosting my earnings.  This will be through online opportunities and through promotions in my day job.  So I will be working 3 times as hard as I would normally.

 Is there a time scale?

Well like any plan you have to define the start and end dates in order to monitor your progress.  The start date is easy as it’s now.  Then end date, well I decided to take a leave from the “pay off your mortgage in 2 years” show and will be attempting to achieve this result in 2 years.

This will mean paying £37,500 per year or £3,125 of overpayments per month.  Wow…