A thrifty mother has shared how she plans to reduce her mortgage by £1,500 using a clever strategy. Neesha Craig, 36, residing in Swansea, Wales, with her spouse and child, recently earned £300 by selling her Samsung Galaxy S23 Ultra and decided to utilize the sum for an additional payment on her mortgage.
According to a recent survey conducted by musicMagpie involving 2,000 adults, it was found that 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 website, emphasized the importance of making mortgage overpayments, stating that even a modest overpayment can yield significant benefits. She detailed her own experience, where trading in her previous Samsung Galaxy S23 Ultra for £300 allowed her to trim two months off her mortgage term, resulting in a £1,510 interest saving.
Overpaying on a mortgage involves making extra payments on top of the regular monthly installment. This approach accelerates the mortgage payoff, reducing the overall interest accrued and potentially leading to substantial savings and a shorter mortgage duration.
Before proceeding with an overpayment, it is essential to check if your mortgage terms permit additional payments without penalties. Most lenders allow up to a 10% overpayment annually for individuals on fixed-rate deals. Fees for overpayments typically range from 1% to 5% for those charged, while those on standard variable rate deals often have more flexibility in overpaying.
Consideration should be given to clearing priority debts and establishing an emergency fund before making overpayments. The partnership between musicMagpie and Timpson now enables customers to trade in old smartphones at Timpson stores nationwide, offering a swift and convenient trading option.
AO World, the parent company of Music Magpie since December 2024, lauded the collaboration with Timpson for providing a seamless phone trade-in experience. The service, initially trialed for four months in over 1,300 Timpson outlets, complements Timpson’s existing services such as shoe repairs, key cutting, and dry cleaning.
Customers can present their phones at the store for assessment, with funds transferred promptly. Opting for Daily Mirror as a ‘Preferred Source’ on Google News grants quick access to personalized news updates.