A mother who is savvy with her finances shared her strategy to reduce her mortgage payments by £1,500. Neesha Craig, 36, residing in Swansea, Wales, alongside her spouse and child, managed to secure £300 by selling her Samsung Galaxy S23 Ultra and utilized the proceeds to make an additional payment towards her mortgage.
According to a recent survey conducted by musicMagpie involving 2,000 individuals, approximately 38% of British citizens possess at least one unused smartphone in their possession, valued at an average of £250.
Neesha, the founder of TheFunMoneyClub, emphasized the significance of making mortgage overpayments, underscoring that even a modest overpayment can yield substantial benefits. By trading in her old Samsung phone for £300, she directed the funds to her mortgage provider, resulting in a reduction of two months from her mortgage term and saving £1,510 in interest.
Making a mortgage overpayment involves supplementing your standard monthly payment, enabling you to expedite the repayment process and ultimately reduce the total interest accrued, potentially leading to significant savings and a shorter mortgage term.
It is essential to verify with your lender whether your mortgage agreement permits overpayments without incurring additional charges. For fixed-rate mortgages, most providers allow up to a 10% annual overpayment limit. Fees for overpayments typically range between 1% and 5% of the surplus amount for fixed-rate deals. Conversely, standard variable rate mortgages usually offer more flexibility for overpayments, but it is advisable to confirm with your lender beforehand.
Before proceeding with an overpayment, it is recommended to address any pressing debts and ensure an emergency fund is in place.
In related news, musicMagpie recently partnered with retailer Timpson to enable customers to trade in their old smartphones at Timpson stores nationwide. The collaboration, facilitated by AO World, the parent company of Music Magpie, aims to offer a more expedited and convenient method for individuals to trade in their phones. This initiative builds upon a successful four-month trial in over 1,300 Timpson stores, enhancing the existing array of services provided, which range from shoe repairs and key cutting to dry cleaning.
Customers can visit Timpson stores to trade in their phones, undergo assessment on-site, and receive funds promptly.
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