A savvy mother has shared her strategy to reduce her mortgage by £1,500. Neesha Craig, 36, residing in Swansea, Wales, along with her family, received £300 for her Samsung Galaxy S23 Ultra and utilized the amount for an additional payment towards her mortgage.
According to a recent study conducted by musicMagpie involving 2,000 adults, approximately 38% of the British population harbor at least one abandoned smartphone in their possession, with an average value of £250.
Neesha, who manages the financial website TheFunMoneyClub, emphasized the importance of mortgage overpayments, highlighting how even a modest overpayment can yield significant benefits. By trading in her old Samsung Galaxy S23 Ultra and directing the £300 to her mortgage provider, Neesha managed to trim two months off her mortgage term, resulting in a savings of £1,510 in interest.
Making an overpayment on your mortgage involves an extra payment on top of your regular monthly installment, leading to accelerated mortgage repayment, reduced overall interest costs, and potential savings amounting to thousands of pounds, ultimately shortening the mortgage duration.
It is crucial to verify with your lender whether your mortgage terms permit overpayments without incurring additional charges. While most fixed-rate mortgage agreements allow up to a 10% annual overpayment, fees ranging between 1% and 5% may apply if overpaying on certain deals. In contrast, standard variable rate deals often allow unrestricted overpayments, but it is advisable to confirm with your lender beforehand.
Before proceeding with an overpayment, it is essential to evaluate whether any priority debts require immediate attention and ensure the presence of an emergency fund.
In other news, musicMagpie has collaborated with retailer Timpson to enable customers to trade in their old smartphones at Timpson stores nationwide. The partnership, initiated by AO World following its acquisition of Music Magpie in December 2024, aims to provide a faster and more convenient platform for phone trade-ins.
The service, which follows a successful four-month trial in over 1,300 Timpson stores, complements the existing array of services offered by Timpson, including shoe repairs, key cutting, and dry cleaning. Customers can deliver their phones in-store for evaluation, with immediate fund transfers upon assessment.
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