A mother who is focused on saving money shared her strategy to reduce her mortgage by £1,500 through a simple yet effective tip. Neesha Craig, residing in Swansea, Wales, with her spouse and child, recently acquired £300 by selling her Samsung Galaxy S23 Ultra, which she promptly used to make an additional payment towards her mortgage.
According to a recent survey conducted by musicMagpie involving 2,000 adults, approximately 38% of people in the UK possess at least one unused smartphone, typically valued at around £250, stashed in their homes.
Neesha, the founder of TheFunMoneyClub, emphasized the significance of making mortgage overpayments, citing her own experience: “Overpaying your mortgage might not be a top priority, but even a modest overpayment can yield substantial benefits. By trading in my old Samsung Galaxy S23 Ultra for £300 and directing that sum towards my mortgage, I managed to reduce my mortgage term by two months and save £1,510 in interest.”
Making an overpayment on your mortgage entails contributing an extra amount on top of your regular monthly payment. This practice accelerates the mortgage repayment process, resulting in lower overall interest costs, potentially leading to significant savings and a shortened mortgage duration.
It is important to note that not all mortgage agreements permit overpayments without imposing fees, so it is advisable to check with your lender beforehand. Typically, under a fixed-rate deal, most lenders allow up to a 10% annual overpayment. If a fee is applicable, it usually ranges between 1% and 5% of the overpaid amount. Conversely, with a standard variable rate deal, there is usually more flexibility for overpayments, but it is recommended to verify this with your lender.
Before deciding to make an overpayment, it is essential to evaluate whether you have any priority debts that require immediate attention and if you have an emergency fund in place.
The partnership between musicMagpie and Timpson now enables customers to trade in their old smartphones at Timpson stores nationwide, offering a quicker and more convenient method for phone trade-ins, as highlighted by AO World, the owner of Music Magpie. This initiative builds upon a successful four-month trial in over 1,300 Timpson stores, expanding the range of services offered by Timpson, which includes shoe repairs, key cutting, and dry cleaning.
Customers can visit a Timpson store, hand over their old phone for assessment, and receive funds transferred within minutes while they wait.
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