When Neesha Craig and her husband bought their house eight years ago, the only way they could afford it was by taking on a 37 year-long mortgage term which they would have been paying until retirement age.
However, the money-saving mum is determined to pay off their mortgage as quickly as possible, solely from money made through side hustles.
Her latest mortgage-reducing venture saw her trade in her old mobile phone for cash – which resulted in her saving £1,510 on her mortgage interest and shaved two months off her mortgage term.
Neesha, 36, who lives in Swansea, South Wales, explained: “When you have a mortgage, interest is piled on and people don’t realise how rapidly it mounts up.
“So you could have a £100,000 house and end up paying £500,000 to the bank in the long term. It is an insane amount of money.”
Neesha, who is married and has a son, lives in a four-bedroom detached house. When she and her husband bought the house, the only way they could afford it was by taking on a longer-term mortgage of around 37 years.
But two years ago, Neesha began a mission to overpay on their mortgage by using as many money-saving and earning hacks as she could think of – and as a result, their mortgage which was around £170,000 when they first took it out, is now down to £96,000 and has 28 years left on it.
In her latest venture, Neesha decided to see what her old phone was worth and when she discovered it was £300, she looked into how much it would reduce her mortgage by and was amazed at the difference it would make.
Neesha Craig has more than 70,000 followers on her Instagram account, where she regularly shares tips and side hustles“I upgrade my phone every two years because I am one of those people who loves tech,” she said. “I had a Samsung Galaxy S23 Ultra and because it wasn’t that old, it was worth £300. I was amazed as I wasn’t expecting that.
“I traded it in and got £300 and I wanted to see what more I could do with that £300, so I typed it into a mortgage overpayment calculator and was stunned at the difference it would make. Not only was I saving over £1,500 in interest, I reduced my mortgage term by two months.
“Overpaying your mortgage might not be on people’s radar, but even a small overpayment can have a huge impact.”
Whilst overpaying your mortgage can be incredibly useful in cutting costs, one of the most common downsides is early repayment charges. Depending on your mortgage deal, you may have to pay a fee for paying extra on your mortgage.
Yet, more than one in three Brits could be minutes away from being able to significantly boost their bank balance, new research by musicMagpie has revealed.
A survey of 2,000 UK adults found that around 38 per cent have at least one smartphone in their junk drawer. But that apathy could be costing them around £250 based on musicMagpie’s average trade-in value.
Neesha, who is a money-saving influencer, took her old phone to high-street retailer Timpson, as they have teamed up with musicMagpie to offer in-person trade-ins, and she received her £300 as an instant payout.
“It meant I didn’t have to post my phone off anywhere or risk it getting lost and I didn’t have to wait for my money,” she said.
Neesha has more than 70,000 followers on her Instagram account, where she regularly shares tips and side hustles.
Her financial goal is to pay off her mortgage as quickly as possible, with money made from her side hustles.
Neesha told The i Paper she uses a huge number of side hustles and any income she generates through them goes straight into reducing her mortgage.
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“I do everything from using cashback sites, doing surveys, market research, training AI, data sharing, watching TV and receipt scanning to earn extra cash,” she said. “Basically, everything which requires an internet connection.”
Neesha explained that getting on the housing ladder was a struggle and when they did it eight years ago, they knew the only way they could do it was by agreeing to take on a long-term mortgage. However, she is now focused on dramatically reducing that.
“I am a millennial and we wanted to get on the housing ladder, but it was a real struggle. It is even harder for people now as interest rates and the amounts needed for a deposit are so high.
“Many people are taking on very long-term mortgages and as a result, the interest they will end up paying in the long run will be extortionate.
“But we are now on track to meet our goal of being mortgage-free in 10 years time. We have already done two years of overpayments so we will hopefully be mortgage-free a massive 20 years earlier than we would have been.”
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