A frugal mother has shared a smart money-saving strategy that will cut £1,500 off her mortgage balance. Neesha Craig, residing in Swansea, Wales, with her spouse and child, recently received £300 by selling her Samsung Galaxy S23 Ultra and promptly used the funds to make an additional payment towards her mortgage.
According to a recent survey conducted by musicMagpie involving 2,000 participants, approximately 38% of individuals in the UK possess at least one old smartphone stashed away, with an average value of £250.
Neesha, the founder of TheFunMoneyClub website, emphasized the significant impact of making mortgage overpayments, even if it’s a modest amount. By trading in her old Samsung phone for £300, she applied the sum directly to her mortgage, reducing her mortgage term by two months and saving £1,510 in interest.
Overpaying on your mortgage involves making extra payments beyond your regular monthly installments, aiding in quicker mortgage repayment and reducing overall interest costs, potentially leading to substantial savings and a shorter mortgage duration.
It’s essential to verify with your lender whether your mortgage terms allow for overpayments without penalties. Most fixed-rate deals permit up to a 10% annual overpayment limit, while standard variable rate agreements generally allow unlimited overpayments, but it’s advisable to confirm with your lender.
Before making overpayments, it’s crucial to assess if you have any high-priority debts to settle first and ensure you have an emergency fund in place.
Following a collaboration between musicMagpie and Timpson, customers can now trade in their old smartphones at Timpson stores nationwide, with funds transferred quickly after in-store assessments, offering a more convenient trade-in process.
AO World, the parent company of Music Magpie since December 2024, highlighted the partnership with Timpson as a faster and more accessible option for phone trade-ins, building upon Timpson’s existing services like shoe repairs, key cutting, and dry cleaning.
The service, available in over 1,300 Timpson stores following a successful four-month trial, allows customers to receive on-the-spot assessments and quick fund transfers for their traded-in phones.
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