Mortgage overpayment app launches

A new ‘fintech’ app, called Sprive, has launched which claims that it can make it easier for people to become mortgage-free faster, saving thousands of pounds in the process.

Sprive is the first independent mortgage overpayment app in the UK and is free of charge, making it easier than ever before for the millions of mortgagees in this country to take full advantage of this surprisingly effective money-saving opportunity.

Using Open Banking and its own unique artificial intelligence (AI), Sprive is the latest fintech app to launch with a clear mission to improve the lives of its users, by making it easier than ever before to make the most of the huge savings that are possible by making regular overpayments on your mortgage.

Whilst 46% of homeowners have made overpayments, it is often done ad hoc and with many choosing to do so later in life.  With lenders calculating interest daily, and front-loading interest payments, homeowners can save an enormous amount by putting the equivalent of a few extra pounds towards their mortgage a day.

For example:

£250,000 mortgage at 2% interest for 40 years. Total interest paid = £113,487

Overpay:                                           Mortgage cut by:                Saving:         

£3 per day (£90 per month)           6 years and 1 month           £19,210

£5 per day (£150 per month)         9 years and 2 months          £28,433

£10 per day (£300 per month)       14 years and 11 months     £45,311

 

Same mortgage with 25 year term. Total interest paid = £67,947

Overpay:                                           Mortgage cut by:                Saving:      

£3 per day (£90 per month)           2 years and 5 months         £7,170

£5 per day (£150 per month)        3 years and 10 months       £11,155

£10 per day (£300 per month)      6 years and 8 months         £19,133

With 11 million residential mortgages currently outstanding, representing a staggering £1.6 trillion of consumer debt and costing homeowners billions a year in interest, the scale of the savings that could be made by optimised overpayments is clearly enormous.

Using Sprive revolutionises overpayments by helping people pay off their mortgage faster without impacting their lifestyle.

Sprive works out what you can afford each month based on your spending and automatically sets that money aside for you. With one tap you can then send the money to your lender, while leaving you able to adjust the figure each month if you want to.

Founder and CEO of Sprive, Jinesh Vohra said “Inspired by the fintechs that use AI technology to help people save and invest each month, we’re helping people put their spare cash towards their mortgage. The savings achieved can be huge, with quite life changing results.”

“I managed to become mortgage free earlier than most, and the savings and freedom it gave me were quite transformative. Sprive’s mission is to make it super easy for everybody to use their spare income more wisely to get mortgage free as fast as they can, while staying in total control of their money.”

Sprive already has the ability to make mortgage overpayments seamlessly with 11 major lenders including HSBC, Lloyds, Barclays, Santander, RBS, Virgin Money, Halifax, Natwest, Yorkshire Building Society, Accord Mortgages and TSB Bank. This coverage represents nearly 70% of the mortgage market and further additions due later this month will take coverage to nearly 80%.

Vohra continued “Customers who joined us in our pre-launch beta are already on target to achieve an average saving of £32,000 by paying off their mortgages 8 years early. These are exciting early results and given our ambitious plan to help 1 million people repay their mortgages faster, Sprive could end up saving the public an astonishing £32 billion in interest by wiping an impressive 8 million years off currently outstanding mortgages.”