A thrifty mother has shared her strategy to reduce her mortgage by £1,500 through a clever tactic.
Neesha Craig, aged 36 and residing in Swansea, Wales, alongside her spouse and child, recently earned £300 by selling her Samsung Galaxy S23 Ultra and utilized the proceeds to make an additional payment on her mortgage.
According to a recent study conducted by musicMagpie involving 2,000 individuals, approximately 38% of the British population possess at least one old smartphone in their possession, valued at an average of £250.
Neesha, the founder of the financial platform TheFunMoneyClub, emphasized the significance of mortgage overpayments, stating, “Even a modest overpayment can yield significant benefits that might not be immediately obvious.”
“I traded in my former Samsung Galaxy S23 Ultra for £300. Subsequently, I promptly allocated the £300 to my mortgage provider, resulting in a reduction of two months from my mortgage term and saving me a total of £1,510 in interest,” Neesha added.
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Making an overpayment on your mortgage involves submitting an extra payment on top of your regular monthly installment.
By doing so, you can expedite the repayment of your mortgage, leading to a reduced overall interest amount, potentially resulting in substantial savings and a shorter mortgage duration.
It is important to note that not all mortgage agreements permit overpayments without imposing a charge