A thrifty mother has shared her strategy to reduce her mortgage by £1,500. Neesha Craig, 36, residing in Swansea, Wales, along with her spouse and child, recently received £300 for selling her Samsung Galaxy S23 Ultra and utilized the funds to make an additional payment on her mortgage.
According to a recent survey conducted by musicMagpie involving 2,000 adults, approximately 38% of Britons possess at least one old smartphone stashed away, valued at an average of £250.
Neesha, who manages TheFunMoneyClub financial website, emphasized the significance of mortgage overpayments, noting that even a modest overpayment can yield substantial benefits. By trading in her outdated Samsung Galaxy S23 Ultra for £300, Neesha promptly allocated the amount towards her mortgage, resulting in a reduction of two months from her mortgage term and saving £1,510 in interest.
Making an overpayment on a mortgage involves paying an extra amount on top of your standard monthly installment. This approach aids in expediting the mortgage repayment process, thereby reducing the overall interest accrued, potentially leading to significant savings and a shorter mortgage duration.
However, before proceeding with overpayments, it is essential to verify with your lender as not all mortgages permit overpayments without incurring fees. Typically, individuals on a fixed-rate deal can pay up to 10% extra annually, with potential charges ranging from 1% to 5% for overpayments. Conversely, those on a standard variable rate deal usually have the flexibility to overpay without restrictions, but it is advisable to confirm with the lender.
Prior to making overpayments, it is advisable to address any priority debts and ensure the availability of an emergency fund.
Meanwhile, musicMagpie recently announced a partnership with Timpson, enabling customers to trade in their old smartphones at Timpson stores nationwide. The collaboration aims to offer a more expedient and streamlined process for phone trade-ins, enhancing customer convenience.
The service, which follows a successful four-month trial in over 1,300 Timpson stores, complements the existing range of services provided by Timpson, including shoe repairs, key cutting, and dry cleaning. Customers can bring their old phones to the store for assessment, with funds transferred within minutes of evaluation.