A woman is set to reduce her mortgage term by 18 months saving her £7,000 in interest payments thanks to a cashback app.
Donna Baker-Lacey, 38, has been using Shop with Sprive for over a year to get cashback on her shopping with Sainsbury’s, Amazon and other big names, which she is using to pay off her mortgage.
She said it’s a “reassurance” to know she is paying off her mortgage even when she was out of work this year. She said: “This year, I didn’t work over the summer. I was out of work for three months.
“We were still doing our usually spending, like the groceries shop and bits and pieces for the kids. I didn’t have to completely stall progress towards what I wanted to achieve, which was making as many overpayments as possible.”
She has also used the app to get cashback when purchasing items from JD Sports, New Look and Costa Coffee.
She lives with her husband and two children in a four-bedroom detached home in Reading. She has lived there for 17 months and has been a home owner for nine years.
She started using Sprive as she wanted to make payments towards her mortgage and she liked that the app provides up-to-date information about how much is being paid off.
The mum has set a minimum payment of £75 a month and she used to pay off £500 a month when she was in full-time employment.
The app can be used to get cashback deals with more than 50 retailers including Morrisons, Iceland, Waitrose and M&S. The app cannot currently be used to get cashback with Sainsbury’s.
Sprive calculated that a person with a mortgage of £250,000 at 5.5 percent with a 30-year term, who spends £500 on their monthly food shop, could save £8,500 in interest and pay off their mortgage nine months earlier.
Jinesh Vohra, CEO of Sprive, said: “At the beginning of your mortgage you’re paying mostly interest, and the higher the rate, the more interest you’re paying compared to the debt you’re clearing, so the earlier and the more often you make mortgage overpayments the more you save in the long run.
“However, with rising costs – and increasing mortgage rates – most people don’t have the extra cash to pay off their mortgage faster; and that is how Shop with Sprive can help.”
The group calculated a person with an £180,000 mortgage with a 20-year term at 5.5 percent who spends just £250 a month on their groceries, could save more than £1,500 in interest, reducing their term by two months.
Mr Vohra added: “ We don’t want to push people into spending more than they would otherwise or at retailers they wouldn’t usually use.
“That’s why we’ve focused on partnering with brands that our customers are likely to use on a regular basis – our partners include Morrisons, Costa, Uber, Just Eat and Primark.”
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We don’t want to push people into spending more than they would otherwise -or at retailers they wouldn’t usually use – that’s why we’ve focused on partnering with brands that our customers are likely to use on a regular basis – our partners include Morrisons, Costa, Uber, Just Eat and Primark.
