Mortgage lenders typically prefer borrowers to maintain their loans, as this is central to their profit model. Consequently, early repayment may not only be discouraged but can also incur penalties. This leads to the question: is there a technological and financial solution to this issue?
Introducing Sprive: A New Mortgage Payment Solution
Sprive is a fintech application targeted at the U.K. market, designed to help users accelerate their mortgage repayments through automation and cashback incentives. Since its launch in October 2021, Sprive claims to enable users to save an average of £10,000 over the lifetime of their mortgage.
Investment and Financial Backing
The startup recently secured £5.5 million ($7.3 million) in funding, led by Ascension, a venture capital firm that positions itself as an impact investor. Ascension has also invested in other fintech ventures such as Tembo, Wagestream, SuperFi, and Credit Kudos, which was acquired by Apple.
How Sprive Works
Sprive enables homeowners to accelerate their mortgage repayments by utilizing funds from their everyday shopping. By linking their bank accounts to the Sprive app, users can apply cashback offers and discount vouchers earned through regular purchases at major U.K. supermarkets directly toward their mortgage. This innovative approach allows users to save on interest payments and could potentially reduce their mortgage terms by years.
Benefits to Lenders and Users
According to CEO Jinesh Vohra, Sprive provides lenders with a digital platform to acquire new customers more efficiently. The app leverages access to users’ spending habits, mortgage details, credit profiles, and property information, assisting lenders in innovation without the high costs typically associated with traditional methods reliant on mortgage advisers.
Vohra noted, “Every time someone shops or switches mortgages, we make money. Within 15 minutes of shopping, users can apply cash toward their mortgage, with the app actively scanning the market for better mortgage deals. Refinancing also generates commissions for us from mortgage lenders.”
This funding round also included contributions from Channel4Ventures (the investment arm of U.K. broadcaster Channel4), Velocity Capital, and Two Magnolias.