The pain points included factors such as a lack of visibility of how much overpayments would impact interest and savings, lenders reducing monthly payments when overpayments were made, not having an easy way to make overpayments, and so on.
Now supporting over 20,000 people across the UK, Sprive calculates users’ spend and enables homeowners to set money aside for mortgage overpayments, directly connecting to their individual bank accounts.
Mr Vohra said: “The less money you spend, the more money is set aside within limits you can afford. With just one tap, the money can be paid towards the mortgage. If you need the money back from your Sprive account, just hit “withdraw” and in real-time, the money is paid back to your bank. Customers have a lot of control, and can easily cancel or pause auto-saves.”
Users can track the savings they’re making, how much of the home they own, and their Loan-to-Value ratio (LTV), while also seeing their mortgage details in one place and tracking how much of their early repayment allowance they have utilised. Sprive users can also shop with over 30 brands using the app.
Working with brands such as Morrisons, M&S, Waitrose, Deliveroo, Argos, and John Lewis, Mr Vhora said: “By doing your regular shopping, you can now get extra money towards your mortgage within hours of doing the shop.”
Express.co.uk spoke to a number of experts to explore the benefits of overpaying a mortgage, and the general theme upheld by most was that a number of factors should be taken into consideration before making any decisions.
Rajan Lakhani, resident money expert at smart money app Plum said that while mortgage overpayments are a “particularly fruitful strategy” for homeowners who still owe more than 60 percent of their home’s value – as they are most vulnerable to heavy interest increases and therefore have the most to gain by reducing it – it’s may “not always be the best option”.
