A thrifty mother has shared her strategy to reduce her mortgage by £1,500 using a clever trick.
Neesha Craig, 36, residing in Swansea, Wales, together with her spouse and child, recently earned £300 by selling her Samsung Galaxy S23 Ultra, which she utilized as an extra payment towards her mortgage.
A recent survey conducted by musicMagpie involving 2,000 individuals unveiled that approximately 38% of Britons possess at least one old smartphone stashed away, with an average value of £250.
Neesha, the founder of financial platform TheFunMoneyClub, emphasized the significance of mortgage overpayments, stating, “Even a modest overpayment can yield significant benefits.”
“By trading in my previous Samsung Galaxy S23 Ultra for £300, I promptly redirected the funds to my mortgage provider, resulting in a reduction of two months from my mortgage term and saving me £1,510 in interest,” she added.
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Making an overpayment on your mortgage involves an additional payment on top of your regular monthly installment.
This approach aids in accelerating the mortgage payoff, resulting in lower overall interest accumulation, potentially leading to substantial savings and a shortened mortgage duration.
It is essential to check with your lender as not all mortgages permit overpayments without incurring charges. Most fixed-rate deals typically allow up to a 10% annual surplus payment.
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