A mother focused on saving money shared her strategy to reduce her mortgage by £1,500 using a simple trick. Neesha Craig, a 36-year-old resident of Swansea, Wales, utilized £300 received from selling her Samsung Galaxy S23 Ultra to make an extra payment on her mortgage.
According to a recent survey conducted by musicMagpie involving 2,000 adults, 38% of Britons possess at least one unused smartphone in their possession, with an average value of £250.
Neesha, the founder of TheFunMoneyClub website, emphasized the significance of making mortgage overpayments. She explained how trading in her old Samsung phone for £300 enabled her to shorten her mortgage term by two months, resulting in a savings of £1,510 in interest.
Making an overpayment on a mortgage involves supplementing the regular monthly payment, aiding in faster mortgage repayment and reduced overall interest costs, potentially leading to substantial savings and a shorter mortgage duration.
Not all mortgages permit overpayments without charges, especially fixed rate deals, which often allow up to 10% additional annual payments. Fees for overpayments typically range from 1% to 5% of the excess amount. For standard variable rate deals, overpayment limits are usually more flexible, but borrowers should verify with their lender.
Before considering an overpayment, individuals should prioritize clearing any outstanding debts and ensuring they have an emergency fund in place.
Recently, musicMagpie partnered with retailer Timpson to offer customers the opportunity to trade in old smartphones at its stores nationwide, providing a swift and convenient trading experience. This collaboration follows a successful trial period and complements Timpson’s existing services, including shoe repairs, key cutting, and dry cleaning.
Customers can visit Timpson stores to have their phones assessed on-site, with funds transferred within minutes after the evaluation.
