A thrifty mother has shared her strategy to reduce her mortgage by £1,500 through a clever trick.
Neesha Craig, aged 36 and residing in Swansea, Wales, with her husband and child, recently earned £300 by selling her Samsung Galaxy S23 Ultra and used the proceeds to make an additional payment towards her mortgage.
According to a recent survey conducted by musicMagpie among 2,000 adults, approximately 38% of people in the UK have at least one old smartphone stored away, with an average value of £250.
Neesha, the founder of the financial website TheFunMoneyClub, emphasized the importance of mortgage overpayments, stating, “Even a small overpayment on your mortgage can yield significant benefits.
“By trading in my previous Samsung Galaxy S23 Ultra for £300 and directing that sum to my mortgage provider, I was able to reduce my mortgage term by two months, ultimately saving £1,510 in interest.”
Making an overpayment on your mortgage involves paying more than your regular monthly installment, leading to faster repayment and reduced overall interest costs, potentially resulting in substantial savings and a shorter mortgage duration.
Before proceeding with overpayments, it is advisable to check with your lender, as some mortgages may have restrictions or fees associated with extra payments. Typically, fixed-rate mortgages allow up to a 10% additional payment annually, while standard variable rate mortgages often permit unrestricted overpayments.
Prior to making overpayments, it is essential to address any priority debts and ensure you have an emergency fund in place.
This development comes following musicMagpie’s collaboration with Timpson, enabling customers to trade in old smartphones at Timpson stores nationwide.
AO World, the parent company of Music Magpie since December 2024, hailed the partnership with Timpson as a more convenient and efficient way for individuals to exchange their phones.
After a successful four-month trial in over 1,300 Timpson stores, the service will complement Timpson’s existing offerings, ranging from shoe repairs and key cutting to dry cleaning.
Customers can hand over their old phones in-store for immediate assessment, with funds transferred within minutes.
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