A thrifty mother has shared her strategy to reduce her mortgage by £1,500. Neesha Craig, 36, residing in Swansea, Wales, along with her husband and child, recently obtained £300 for her Samsung Galaxy S23 Ultra, which she then utilized to make an additional payment on her mortgage.
According to a recent survey of 2,000 adults conducted by musicMagpie, approximately 38% of Brits possess at least one unused smartphone, with an average value of £250, stashed away in their homes.
Neesha, who manages the financial website TheFunMoneyClub, emphasized the impact of mortgage overpayments, stating that even a modest overpayment can yield significant benefits. She traded in her old Samsung Galaxy S23 Ultra for £300 and promptly directed the amount to her mortgage provider. This action reduced her mortgage term by two months, resulting in savings of £1,510 in interest.
Overpaying on a mortgage involves making extra payments on top of the regular monthly installment. This approach aids in accelerating the mortgage repayment process, reducing the overall interest accrued, potentially saving thousands and shortening the mortgage duration.
It is essential to verify with your lender before making overpayments, as not all mortgages permit additional payments without incurring fees. Typically, on fixed-rate deals, most lenders allow up to a 10% annual overpayment. Fees for overpayments usually range between 1% and 5% of the excess amount. For standard variable rate deals, usually, there are no restrictions on overpayments, but it is advisable to confirm with your lender.
Before deciding to make an overpayment, it is crucial to assess if there are any priority debts that require immediate attention and whether an emergency fund is in place.
In related news, musicMagpie has partnered with Timpson to enable customers to trade in their old smartphones at Timpson stores nationwide. This collaboration, following AO World’s acquisition of Music Magpie in December 2024, aims to provide a more convenient and swift phone trade-in experience for customers.
The service, which has undergone a successful four-month trial in over 1,300 Timpson stores, complements Timpson’s existing services, including shoe repairs, key cutting, and dry cleaning. Customers can hand over their phones in-store for evaluation while they wait, with funds transferred within minutes.
