Assuming a £250,000 mortgage over 30 years at a rate of 5%, a one-off £5 cashback payment on a weekly shop could take £17.50 off the mortgage in saved interest over the term. This means that £5 can turn into £22.50.
Sprive continued on to say that taking the same £250,000 mortgage over 30 years at a rate of 5% with a typical monthly grocery spend of £500 could result in a saving of £6,487, and see the mortgage cleared seven months earlier.
Jinesh Vohra, CEO of Sprive, said compound interest typically works against borrowers, as it adds tens of thousands in extra cost over the life of a mortgage.
However, with Sprive, every pound you overpay reduces your balance, which means less interest from that day forward.
The firm teams up with around 85 leading brands, such as Tesco, Sainsbury’s, Asda, Morrisons, M&S Food, Waitrose and Iceland, and lets users earn mortgage cashback by doing their normal shopping via the app.
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Vohra said: “Mortgages are one of the biggest financial commitments people ever make. Sprive’s cashback feature doesn’t require users to shop differently or spend more. It simply redirects rewards to where they’ll have the greatest impact. This means we can help people become mortgage-free faster, without changing their lifestyle.”
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Cashback can quadruple by leveraging mortgage overpayments, Sprive says
