A mother focused on saving money has shared her strategy to reduce her mortgage by £1,500 through a simple trick. Neesha Craig, 36, residing in Swansea, Wales, along with her spouse and child, recently earned £300 by selling her Samsung Galaxy S23 Ultra and used the proceeds to make an additional payment towards her mortgage.
According to a recent survey conducted by musicMagpie involving 2,000 adults, approximately 38% of Britons possess at least one unused smartphone in their household, valued at an average of £250.
Neesha, who manages the financial platform TheFunMoneyClub, emphasized the significance of mortgage overpayments, stating that even a modest overpayment can yield substantial benefits. She exemplified this by trading in her old Samsung Galaxy S23 Ultra for £300, subsequently directing the sum to her mortgage provider, resulting in a reduction of two months from her mortgage term and saving £1,510 in interest.
Making an overpayment on your mortgage involves submitting an extra payment on top of your regular monthly installment. This approach aids in accelerating the mortgage repayment process, reducing overall interest expenses, potentially leading to substantial savings and shortening the mortgage duration.
It is essential to verify with your lender whether your mortgage terms allow for overpayments without incurring penalties. Most fixed-rate deals permit an additional payment of up to 10% annually. Fees for overpayments typically range from 1% to 5% for mortgages with fixed rates. On the other hand, standard variable rate mortgages generally do not impose restrictions on overpayments, although it is advisable to confirm this with your lender.
Before considering an overpayment, it is advisable to assess if there are priority debts that require settling first and if you have established an emergency fund.
In related news, musicMagpie recently announced a partnership with retailer Timpson, enabling customers to trade in their old smartphones at Timpson stores nationwide. AO World, the parent company of Music Magpie, highlighted that this collaboration offers a more efficient and convenient method for phone trade-ins, following a successful four-month trial across over 1,300 Timpson stores. This initiative adds to Timpson’s existing services, encompassing shoe repairs, key cutting, and dry cleaning.
Customers can bring their phones to the store for assessment, with funds transferred within minutes.