A mother focused on saving money has shared her strategy to reduce her mortgage by £1,500 through a simple trick.
Neesha Craig, aged 36, residing in Swansea, Wales, with her spouse and child, recently earned £300 from selling her Samsung Galaxy S23 Ultra and utilized the funds to make an additional payment on her mortgage.
Findings from a recent survey conducted by musicMagpie on 2,000 adults indicate that approximately 38% of individuals in the UK possess at least one old smartphone in their storage, valued at an average of £250.
Neesha, the founder of TheFunMoneyClub website, commented, “Although making extra mortgage payments might not be a priority for everyone, even a minor overpayment can yield significant benefits.
“I traded in my old Samsung Galaxy S23 Ultra for £300. Subsequently, I directed the entire sum to my mortgage provider, resulting in a reduction of two months from my mortgage term and saving me £1,510 in interest.”
By opting to make a mortgage overpayment, individuals are essentially contributing an additional sum on top of their regular monthly mortgage installment. This approach aids in accelerating the mortgage repayment process, leading to less interest accumulation, potentially saving thousands of pounds and shortening the mortgage duration.
It is essential to verify with your mortgage lender whether overpayments are permissible without incurring any charges. Typically, under fixed-rate agreements, most lenders allow overpayments of up to 10% annually.
Should a fee be applicable, it usually ranges between 1% and 5% of the overpaid amount. For those on standard variable rate contracts, overpayments are usually unrestricted, but it is advisable to confirm with the lender.
Prior to making an overpayment, it is crucial to assess whether any priority debts need addressing first and if there is an emergency fund in place.
Recently, musicMagpie announced a new collaboration with retailer Timpson, enabling customers to trade in old smartphones at its stores nationwide.
Following AO World’s acquisition of Music Magpie in December 2024, the partnership with Timpson offers a more efficient and convenient method for phone trade-ins.
The service, which was initially trialed for four months and available at over 1,300 Timpson outlets, will complement the existing range of services, including shoe repairs, key cutting, and dry cleaning.
Customers can submit their phones in-store for assessment with funds transferred within minutes while they wait.