A frugal mother has shared her strategy to reduce her mortgage debt by £1,500 through a simple technique.
Living in Swansea, Wales, Neesha Craig, 36, along with her spouse and child, recently received £300 by selling her Samsung Galaxy S23 Ultra. She utilized this sum to make an additional payment towards her mortgage.
A recent survey conducted by musicMagpie involving 2,000 individuals unveiled that approximately 38% of the British population possesses at least one old smartphone stashed away, with an average value of £250.
Running the financial website TheFunMoneyClub, Neesha emphasized the significance of mortgage overpayments, stating that even a modest overpayment can yield substantial benefits.
She explained, “I traded my previous Samsung Galaxy S23 Ultra for £300. I promptly directed this amount to my mortgage provider, resulting in a reduction of two months from my mortgage term and saving me £1,510 in interest.”
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Making an overpayment on your mortgage involves making an extra payment on top of your regular monthly installment.
This approach helps in quicker mortgage repayment, leading to lower overall interest costs, potentially resulting in substantial savings and a shorter mortgage duration.
It is important to verify with your lender as not all mortgages permit overpayments without additional charges. Most fixed-rate mortgages allow up to a 10% annual extra payment.
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