First mortgage overpayment app launches
The newly-launched Sprive app allows users to use any spare cash to overpay on their mortgage every month, with one tap.
While the market for ‘smart money’ apps is relatively crowded, with names such as Plum, Moneybox and Chip offering to save or invest users’ spare money, Sprive is the first app dedicated to mortgage debt reduction.
The app works out how much extra you can afford to pay on your homeloan each month based on your spending and automatically sets that money aside for you. At a tap you can then send the money to your lender – or adjust the figure to pay more, or less.
Overpaying a mortgage and shifting the debt early can potentially save borrowers thousands of pounds. For example, overpaying a £250,000 mortgage charged at 2% interest by £10 a day would shift the debt six years and eight months early, saving the borrower over £19,000.
“Many borrowers just don’t realise how much they can save by overpaying,” says founder and CEO of Sprive, Jinesh Vohra. “And those that do have until now had to make ad hoc payments to their lender or set up a Direct Debit. I’ve done it myself and the process is just painful. Sprive allows you to overpay quickly and simply with one tap.”
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 adds: “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 eight years early.”
As with all such apps, Sprive users need to be comfortable with the principle of ‘open banking’, where you give permission to your bank or building society to share your financial data with authorised providers.
Sprive is provided free of charge to the customer. The business plans to make its money from mortgage lenders when it starts to source remortgage deals for its customers in the future.
Click here to find out more or to download the App.