A thrifty mother has shared her strategy for reducing her mortgage by £1,500. Neesha Craig, a resident of Swansea, Wales, managed to secure £300 by selling her Samsung Galaxy S23 Ultra and promptly used the proceeds to make an extra payment towards her mortgage.
Research conducted by musicMagpie involving 2,000 individuals uncovered that 38% of Brits possess at least one smartphone in their miscellaneous drawer, with an average value of £250.
Neesha, the founder of TheFunMoneyClub website, emphasized the impact of making mortgage overpayments, stating that even a modest overpayment can yield significant benefits. By trading in her old Samsung phone for £300, she directed the entire sum to her mortgage, resulting in a reduction of two months from her mortgage term and saving her £1,510 in interest payments.
Making an overpayment on your mortgage entails supplementing your regular monthly installment, which aids in hastening the mortgage repayment process, reducing overall interest costs, potentially leading to substantial savings, and shortening the mortgage duration significantly.
It is advisable to verify with your lender whether your mortgage terms permit overpayments without penalties. Most lenders on fixed-rate deals allow up to a 10% overpayment annually. While fees for overpayments typically range between 1% and 5%, standard variable rate deals generally permit unrestricted overpayments, subject to lender approval.
Before proceeding with an overpayment, it is essential to assess if you have outstanding priority debts that necessitate settlement and ensure the availability of an emergency fund.
musicMagpie recently announced a partnership with Timpson, enabling customers to trade in their old smartphones at Timpson stores nationwide. Following the acquisition of Music Magpie by AO World in December 2024, the collaboration aims to provide a more convenient and expedited phone trade-in service.
A four-month trial of the service at over 1,300 Timpson stores has demonstrated its success. Customers can present their phones in-store for evaluation, with funds transferred promptly. This service complements Timpson’s existing offerings, ranging from shoe repairs and key cutting to dry cleaning.