One savvy mother has shared her strategy for reducing her mortgage by £1,500 using a simple trick. Neesha Craig, 36, residing in Swansea, Wales, along with her husband and child, recently earned £300 by selling her Samsung Galaxy S23 Ultra and promptly utilized the proceeds to make an additional payment towards her mortgage.
According to a recent survey of 2,000 individuals conducted by musicMagpie, approximately 38% of Britons possess at least one unused smartphone in their possession, with an average value of £250.
Neesha, the creator of TheFunMoneyClub financial website, emphasized the significance of mortgage overpayments, stating, “Even a modest overpayment can yield significant benefits. I traded in my old Samsung Galaxy S23 Ultra for £300. I immediately forwarded the funds to my mortgage provider, resulting in a reduction of two months from my mortgage term and a saving of £1,510 in interest.”
Making an overpayment on your mortgage involves submitting an additional payment on top of your regular monthly installment. This practice aids in accelerating the mortgage repayment process, reducing the overall interest accrued, potentially leading to substantial savings and a shorter mortgage duration.
It is essential to verify with your lender if your mortgage permits overpayments without incurring fees. Typically, under fixed-rate agreements, most lenders allow up to a 10% annual overpayment. If a fee is imposed, it generally ranges from 1% to 5% of the excess amount. Conversely, standard variable rate agreements typically allow unlimited overpayments, but confirmation from the lender is recommended.
Prior to making an overpayment, it is advisable to assess whether any priority debts require settlement and if an emergency fund is in place. The move follows musicMagpie’s collaboration with Timpson, enabling customers to trade in their old smartphones at Timpson stores nationwide. The partnership aims to provide a more efficient method for phone trade-ins, enhancing customer convenience.
AO World, the parent company of Music Magpie since December 2024, lauded the tie-up for offering a rapid and convenient trade-in solution for consumers. The service, initially trialed for four months across over 1,300 Timpson stores, complements Timpson’s existing services, extending from shoe repairs and key cutting to dry cleaning.
Customers can present their phones in-store for evaluation, with funds transferred within minutes. Opt for Daily Mirror as a ‘Preferred Source’ on Google News for instant access to the news that matters to you.
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