A thrifty mother has shared her strategy for reducing her mortgage by £1,500 through a simple yet effective method. Neesha Craig, 36, residing in Swansea, Wales, managed to secure £300 by selling her Samsung Galaxy S23 Ultra, which she promptly used to make an additional payment on her mortgage.
According to a recent survey conducted by musicMagpie involving 2,000 adults, approximately 38% of individuals in the UK possess at least one old smartphone stashed away, with an average value of £250.
Neesha, the founder of TheFunMoneyClub, emphasized the significance of mortgage overpayments, highlighting how even a modest overpayment can yield substantial benefits. By trading in her previous Samsung Galaxy S23 Ultra for £300, she immediately allocated the sum to her mortgage, resulting in a reduction of two months from her mortgage term and saving her £1,510 in interest.
Making an overpayment on your mortgage involves paying more than your regular monthly installment, which aids in accelerating the mortgage payoff, minimizing overall interest costs, and potentially enabling savings amounting to thousands of pounds while shortening the mortgage duration.
It is important to note that not all mortgage agreements permit overpayments without imposing fees, necessitating verification with the lender. Typically, on fixed-rate deals, most mortgage providers allow up to a 10% additional payment annually. In cases where fees are applicable, they usually range from 1% to 5% of the overpaid amount. For standard variable rate deals, overpayments are usually unrestricted, but it is advisable to confirm with the lender.
Before proceeding with an overpayment, it is essential to assess any outstanding priority debts requiring settlement and ensure the presence of an emergency fund.
Recently, musicMagpie announced a collaboration with retailer Timpson, enabling customers to trade in old smartphones at its stores nationwide. The partnership, facilitated by AO World following its acquisition of Music Magpie in December 2024, aims to offer a more efficient and expedited phone trading service.
Following a successful four-month trial at over 1,300 Timpson stores, the service will complement the existing range of offerings, spanning from shoe repairs and key cutting to dry cleaning. Customers can hand over their old phones in-store for assessment and receive funds transferred within minutes.
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