A thrifty mother has shared her strategy for cutting £1,500 from her mortgage payments. Neesha Craig, 36, residing in Swansea, Wales, along with her family, managed to secure £300 by selling her Samsung Galaxy S23 Ultra and promptly used the sum to make an additional payment on her mortgage.
According to a recent survey conducted by musicMagpie, approximately 38% of UK adults possess at least one unused smartphone, typically valued at around £250, stashed away in their homes.
Through her financial platform, TheFunMoneyClub, Neesha emphasized the significance of making mortgage overpayments for financial gains. By trading in her old Samsung device and channeling the £300 towards her mortgage, she successfully reduced her mortgage term by two months, leading to savings of £1,510 in interest.
Making extra mortgage payments helps expedite the mortgage payoff process, resulting in lower overall interest costs and potentially saving thousands of pounds while shortening the loan duration. However, it is essential to verify with your lender whether overpayments are allowed without penalties, especially for fixed-rate mortgages, which typically permit up to 10% extra annual payments.
Fees for overpayments may range from 1% to 5% for some mortgage deals, while others, like standard variable rate mortgages, often offer more flexibility without additional charges. Before committing to overpayments, it is advisable to address any priority debts and ensure you have a sufficient emergency fund in place.
In related news, musicMagpie has partnered with retailer Timpson, enabling customers to trade in their old smartphones at Timpson stores nationwide. The collaboration, following AO World’s acquisition of Music Magpie in December 2024, aims to provide a quicker and more convenient platform for phone trade-ins, complementing Timpson’s existing services such as shoe repairs, key cutting, and dry cleaning.
Customers can now bring their old phones to Timpson stores for immediate assessment and receive payment within minutes, enhancing the overall trade-in experience.