A savvy mother has shared how she plans to reduce her mortgage by £1,500 using a clever strategy. Neesha Craig, 36, residing in Swansea, Wales, with her family, recently earned £300 by selling her Samsung Galaxy S23 Ultra and utilized the proceeds to make an extra payment on her mortgage.
According to a recent survey conducted by musicMagpie involving 2,000 adults, approximately 38% of Brits have at least one unused smartphone in their possession, with an average value of £250.
Neesha, who manages TheFunMoneyClub website, emphasized the benefits of mortgage overpayments, stating that even a small additional payment can yield significant savings. By trading in her old Samsung phone for £300, she directed the amount towards her mortgage, resulting in a reduction of two months from her mortgage term and saving her £1,510 in interest.
Making an overpayment on your mortgage entails paying more than your regular monthly installment. This approach accelerates the mortgage repayment process, reducing the overall interest incurred, potentially leading to substantial savings and a shorter mortgage duration.
It’s essential to check with your lender before making overpayments, as not all mortgage agreements permit extra payments without charges. Typically, fixed-rate mortgages allow for up to 10% additional payment annually, while standard variable rate mortgages may have more flexibility but still require verification from the lender.
Prior to overpaying your mortgage, assess if you have any priority debts to settle first and ensure you have an emergency fund in place. In related news, musicMagpie has partnered with Timpson to enable customers to trade in their old smartphones at Timpson stores nationwide, offering a streamlined and convenient process for phone trade-ins.