Most mortgage lenders prefer that borrowers don’t pay off their mortgages early. It’s how they earn money. Often, lenders discourage overpayments or even penalize them. But what if there were a way to overcome these challenges while also speeding up mortgage repayments? That’s the vision behind Sprive, a fintech app designed to help U.K. homeowners pay off their mortgages faster. The app uses automation and cash-back rewards to encourage overpayment, and claims to save users an average of £10,000 over the course of their mortgage.
How Sprive Works
Launched in October 2021, Sprive simplifies the mortgage repayment process by allowing users to make automatic mortgage overpayments through their everyday shopping. By linking their bank accounts to the app, users can earn cash-back rewards, discount vouchers, and more from major U.K. supermarkets. The money saved from these offers is then automatically applied to the homeowner’s mortgage, reducing both the term and the interest paid over time.
In addition to overpayment features, Sprive continuously monitors the mortgage market to help users find better deals. It scans the market daily to ensure customers always have access to the best possible mortgage options, saving even more money in the long run.
Sprive’s innovative approach has caught the attention of investors. The fintech startup has just closed a £5.5 million ($7.3 million) funding round, led by Ascension, a venture capital firm known for its focus on impact investing. Ascension’s portfolio includes fintech startups like Tembo, Wagestream, and DebtStream, as well as Credit Kudos, which was acquired by Apple.
Other investors in this round include Channel 4 Ventures (the investment arm of U.K. broadcaster Channel 4), Velocity Capital, and Two Magnolias.
Sprive’s app is more than just a tool for making overpayments. It taps into a wealth of customer data, such as spending, mortgage details, credit information, and property insights, to help users pay off their mortgages faster.
CEO Jinesh Vohra explained that traditional mortgage lenders often rely on mortgage advisers, who tend to be non-digital and fragmented, making it expensive for lenders to innovate. But with Sprive, lenders can acquire new customers more efficiently through digital channels.
“Every time someone shops or switches mortgages, we make money,” Vohra said. “Within 15 minutes of shopping, users can get money toward their mortgage, and we continuously scan the market for better deals.”
The app also generates revenue for Sprive each time a user refinances, earning commission from the mortgage lender.
Addressing a Major Pain Point for Homeowners
Homeownership in the U.K. is a significant financial commitment, and paying off a mortgage early can often feel out of reach for many homeowners. With rising living costs and interest rates, Sprive offers a practical solution by making it easier for users to pay off their mortgages with small, automatic contributions from their everyday spending.
This model not only reduces the financial burden on homeowners but also challenges traditional lenders by offering a streamlined, tech-driven solution. For homeowners, it’s a way to manage mortgage repayments passively, while also benefiting from cash-back rewards and the flexibility to re-mortgage at better rates.
With the latest round of funding, Sprive plans to continue expanding its user base and refining its platform. The company aims to make mortgage overpayments more accessible to a broader audience, driving down costs for homeowners and helping them gain control of their financial futures.
Sprive’s innovative approach could be a game-changer for the mortgage industry, simplifying the complex process of paying off home loans and reducing long-term financial pressure on borrowers.
