A thrifty mother has shared her strategy to reduce her mortgage by £1,500. Neesha Craig, 36, residing in Swansea, Wales, along with her husband and child, recently earned £300 by selling her Samsung Galaxy S23 Ultra. She utilized the funds to make an additional payment towards her mortgage.
A recent survey conducted by musicMagpie involving 2,000 adults unveiled that approximately 38% of Britons possess at least one old smartphone stashed away, with an average value of £250.
Neesha, the founder of TheFunMoneyClub website, emphasized the significance of making mortgage overpayments, mentioning that even a modest overpayment can yield significant benefits. She exemplified by trading in her old Samsung Galaxy S23 Ultra for £300, which she promptly applied to her mortgage, reducing the term by two months and saving £1,510 in interest.
To streamline the process of trading in old smartphones, musicMagpie has partnered with Timpson, enabling customers to trade in their devices at Timpson stores nationwide. This collaboration, part of AO World, which acquired Music Magpie in December 2024, aims to provide a quicker and more convenient trade-in service.
Customers can now hand in their old phones at Timpson stores for assessment, with funds transferred almost instantly. This service builds upon Timpson’s existing offerings, which include shoe repairs, key cutting, and dry cleaning.
Making overpayments on your mortgage can lead to quicker repayment and reduced overall interest expenses. However, it’s essential to check with your lender beforehand, as some mortgages may incur fees for overpayments. Fixed-rate deals typically allow up to 10% extra payments annually, while standard variable rate deals usually permit unlimited overpayments. Before proceeding with overpayments, ensure you prioritize clearing any outstanding debts and have an emergency fund in place.