A savvy mother has shared her strategy to reduce her mortgage by £1,500, demonstrating a simple yet effective money-saving tip. Neesha Craig, a 36-year-old resident of Swansea, Wales, along with her husband and child, recently earned £300 by selling her Samsung Galaxy S23 Ultra. She promptly used this sum to make an additional payment towards her mortgage.
According to a recent survey conducted by musicMagpie involving 2,000 adults, it was found that approximately 38% of Britons possess at least one old smartphone stashed away, with an average value of £250.
Neesha, the founder of TheFunMoneyClub website, highlighted the importance of mortgage overpayments, emphasizing that even a modest extra payment can yield significant benefits. By trading in her outdated Samsung Galaxy S23 Ultra for £300, she managed to shave off two months from her mortgage term, resulting in savings of £1,510 in interest.
Making a mortgage overpayment involves supplementing your regular monthly installment, facilitating quicker mortgage payoff and reducing overall interest costs. However, it’s essential to confirm with your lender whether overpayments are allowed without fees. Typically, fixed-rate mortgage agreements permit up to 10% additional payment annually, with charges ranging from 1% to 5% for overpayments. Conversely, standard variable rate deals often enable unrestricted overpayments, but it’s advisable to verify this with your lender.
Before proceeding with overpayments, it is crucial to address any priority debts and ensure the presence of an emergency fund. Notably, musicMagpie’s collaboration with Timpson now enables consumers to trade in old smartphones at Timpson stores nationwide, offering a convenient and expedited process. AO World, the parent company of Music Magpie, hailed this partnership as a swift and efficient way for individuals to trade in their phones.
Following a successful four-month trial across over 1,300 Timpson stores, the service will augment Timpson’s existing repertoire, encompassing services like shoe repairs, key cutting, and dry cleaning. Customers can hand over their old phones at these stores for immediate assessment, with funds transferred within minutes, streamlining the trade-in process.
