A savvy mother has shared how she plans to reduce her mortgage by £1,500 using a clever strategy. Neesha Craig, aged 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 proceeds for an extra payment on her mortgage.
According to a recent survey conducted by musicMagpie involving 2,000 adults, approximately 38% of Britons store at least one smartphone in their miscellaneous items drawer, with an average value of £250.
Neesha, the founder of TheFunMoneyClub financial website, emphasized the significance of mortgage overpayments, stating that even a modest overpayment can yield substantial benefits. She exemplified this by trading in her old Samsung Galaxy S23 Ultra for £300, which she promptly forwarded to her mortgage provider. This action reduced her mortgage term by two months, resulting in a savings of £1,510 in interest.
Making an overpayment on your mortgage involves submitting an additional payment on top of your regular monthly installment. This strategy aids in quicker mortgage repayment, leading to lower overall interest costs, potentially saving thousands of pounds and shortening the mortgage duration.
It is essential to check with your mortgage lender before making overpayments, as not all mortgages permit this without incurring fees. Typically, fixed-rate deals allow for up to a 10% annual overpayment limit, while standard variable rate deals often have no restrictions. However, fees may apply, ranging from 1% to 5% of the overpaid amount.
Prior to making an overpayment, it is advisable to settle any priority debts and ensure you have an emergency fund in place. This advice comes in light of musicMagpie’s recent partnership with Timpson, offering customers the opportunity to trade in their old smartphones at Timpson stores nationwide. AO World, the parent company of Music Magpie, stated that this collaboration provides a faster and more convenient method for phone trade-ins, with assessments conducted in-store and funds transferred within minutes.
The service, following a successful four-month trial in over 1,300 Timpson outlets, adds to the existing range of services including shoe repairs, key cutting, and dry cleaning provided by Timpson stores. Customers can expect a seamless trade-in experience, with on-the-spot assessments and swift fund transfers.