A savvy mother has shared her strategy to reduce her mortgage by £1,500. Neesha Craig, 36, residing in Swansea, Wales, with her family, managed to garner £300 from selling her Samsung Galaxy S23 Ultra and utilized the proceeds to make an additional payment on her mortgage.
According to a recent survey conducted by musicMagpie involving 2,000 adults, approximately 38% of Britons have at least one unused smartphone in their possession, with an average value of £250.
Neesha, who operates TheFunMoneyClub website, emphasized the significance of mortgage overpayments, stating that even a modest overpayment can yield substantial benefits. By trading in her old Samsung Galaxy S23 Ultra for £300 and channeling the amount towards her mortgage, she shortened her mortgage term by two months, resulting in a savings of £1,510 in interest.
Making an overpayment on a mortgage entails providing an additional sum on top of the regular monthly installment. This practice accelerates the mortgage repayment process, reducing the overall interest accrued and potentially enabling individuals to save significant amounts and shorten the mortgage duration.
Before proceeding with an overpayment, individuals should verify with their lender, as certain mortgages may incur fees for overpayments. Typically, fixed-rate deals permit up to a 10% annual surplus payment without charges. In contrast, standard variable rate deals usually allow unlimited overpayments, but confirmation from the lender is advisable.
It is essential to evaluate if there are any priority debts to settle first and ensure the presence of an emergency fund before making an overpayment.
In other news, musicMagpie has partnered with retailer Timpson to enable customers to trade in their old smartphones at Timpson stores nationwide. Acquired by AO World in December 2024, Music Magpie aims to provide a more convenient and expedited phone trading experience through this collaboration. Following a successful trial period, the service is now accessible in over 1,300 Timpson stores, complementing its existing services like shoe repairs and key cutting.
Customers can visit a Timpson store, hand over their phone for assessment, and receive funds within minutes.