A thrifty mother has shared her strategy to reduce her mortgage by £1,500 through a simple trick. Neesha Craig, 36, residing in Swansea, Wales, together with her spouse and child, recently received £300 by selling her Samsung Galaxy S23 Ultra, which she used to make an extra payment on her mortgage. According to a recent study by musicMagpie involving 2,000 participants, approximately 38% of UK residents have at least one old smartphone in their possession, with an average value of £250.
Neesha, the founder of TheFunMoneyClub financial website, emphasized the significance of making mortgage overpayments, stating that even a minor additional payment can yield substantial benefits. By trading in her outdated Samsung Galaxy S23 Ultra for £300 and promptly directing the funds to her mortgage provider, Neesha managed to shorten her mortgage term by two months, resulting in a £1,510 interest saving.
Making an overpayment on your mortgage entails paying an extra amount in addition to your regular monthly installment. This approach aids in accelerating the mortgage payoff, reducing overall interest costs, potentially leading to substantial savings and a shorter mortgage duration. However, not all mortgages permit overpayments without incurring fees, so it is vital to verify with your lender. Generally, under a fixed-rate deal, most mortgage providers allow up to a 10% annual overpayment.
In cases where fees are applicable, they typically range from 1% to 5% of the overpaid amount. For standard variable rate agreements, overpayments are usually unrestricted, but it is recommended to confirm with the lender. Before deciding to make an overpayment, it is advisable to address any priority debts and ensure the presence of an emergency fund.
The partnership between musicMagpie and Timpson has been announced, enabling customers to trade in their old smartphones at Timpson stores nationwide. Following the acquisition of Music Magpie by AO World in December 2024, this collaboration aims to provide a more convenient and expedited phone trade-in service. The initiative, which stemmed from a successful four-month trial in over 1,300 Timpson stores, complements the existing services offered by Timpson, ranging from shoe repairs and key cutting to dry cleaning. Customers can submit their phones in-store for assessment and receive funds within minutes.
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