A mother who is savvy with money shared her strategy to reduce her mortgage by £1,500 using a clever trick. Neesha Craig, a 36-year-old residing in Swansea, Wales, managed to fetch £300 for her Samsung Galaxy S23 Ultra and applied that sum as an extra payment towards her mortgage.
According to a recent survey conducted by musicMagpie involving 2,000 adults, approximately 38% of Britons have at least one old smartphone stashed away, with an average value of £250.
Neesha, the creator of the financial website TheFunMoneyClub, emphasized the importance of making mortgage overpayments, highlighting that even a modest overpayment can yield significant benefits. She shared her experience of trading in her old phone for £300, which she promptly used to reduce her mortgage term by two months, resulting in savings of £1,510 in interest.
Making additional payments on your mortgage beyond the regular monthly amount can expedite the repayment process and minimize the overall interest accrued, potentially saving you thousands of pounds and shortening the mortgage duration. However, it is essential to verify with your lender if your mortgage permits overpayments without additional charges.
In the event of incurring fees for overpayments, they typically range from 1% to 5% of the excess amount paid. While fixed-rate mortgages usually allow up to a 10% annual overpayment, standard variable rate deals often permit unlimited overpayments, subject to lender confirmation.
Before opting to make an overpayment, it is advisable to prioritize clearing any outstanding debts and ensuring the availability of an emergency fund.
The article also discusses a collaboration between musicMagpie and retailer Timpson, enabling customers to trade in old smartphones at Timpson stores nationwide. AO World, the parent company of Music Magpie since December 2024, described the partnership as a quicker and more convenient method for phone trade-ins, building on Timpson’s existing services such as shoe repairs and key cutting.
Customers can now bring their old phones to Timpson stores for immediate assessment and receive funds within minutes.