I got a letter from my mortgage company yesterday telling me that they had received our latest overpayment from a free app I’m using called Sprive. I’ve been using it since May 2022 and it’s going well so far! I have to say that I’m not the most proactive when it comes to paying down our mortgage, so I was delighted to find out about Sprive.
If you’re in a hurry and want to try it and get £5 to go towards your mortgage, Just click this link to check out sprive (the code is already attached for you, but if you need it, here it is: DQWMDSZR).
Here’s how to pay off your mortgage (the lazy way!) using Sprive.
How does the app work?
In the same way that apps like Plum and Chip take small amounts from your account to save money for you automatically, Sprive takes small amounts from our joint current account and adds it to a pot that gradually builds.
Once it hits a £500 threshold, I can make an over payment to my lender. The amount the app takes can be customised, so you don’t have to worry about too much being taken out.
Mine is set to £25-£150 but generally the app will take around £25-£30 each time. You can cancel pending payments if you wanted to.
Is the app easy to use?
The app is really easy to set up and it guides you every step of the way, which is good because I felt nervous using it initially. You will need your mortgage account number to input into the app, so make sure you have your paperwork handy, or call your lender to get it. I called my mortgage lender for some reassurance, and they confirmed that they had heard of sprive and other customers were using it too. It only works in the UK currently though.
Is the app safe to use?
Firstly, Sprive is FCA (Financial Conduct Authority) regulated which shows the company is ligit. Secondly, the money you save to put. towards your mortgage is stored in an “e-wallet” that isn’t saved or invested. It’s fully protected and kept separate from the company’s own accounts, so if they went bust, your money wouldn’t disappear along with it.
A free app? How does the company get paid then?
They don’t charge users, but they do get paid by mortgage lenders if you happened to take out a new mortgage using the Sprive app. There is a feature on the app that allows you to compare your mortgage to what is available at the time, so you could potentially switch and save money. There’s no pressure to switch though so don’t worry about any sleazy sales tactics.
How buying coffee can help you pay your mortgage down faster
This is something I love about the app – cashback! I can earn cashback towards the pot by spending in certain shops like caffe nero, decathlon, john lewis, M&S and even deliveroo.
So much is said about millenials wasting money on coffees or avocado on toast, but here’s a way you can literally have your cake and eat it too!
This is truly the ultimate lazy way to paying off your mortgage early!
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Should you pay off your mortgage early or save instead?
This is a great question, and in my view, having savings is a good strategy to hedge against a financial crisis. An emergency fund in my opinion is one of the best things you can do for your financial wellbeing. Only you will know how much is “enough” and you have to balance this against having too much in savings. Having money sat idle is eaten away by inflation over time. Ideally, do both, but it obviously depends on your current financial situation.
Also remember that any money that goes into the mortgage is locked up into your property, and the only way to access it is to sell or remortgage your house. Money you put into sprive can be accessed any time (providing you withdraw before sending to your lender), but you won’t earn any interest on it while it’s on the app.
Should you pay off your mortgage early or invest instead?
Everyone has their own opinions about whether they should overpay their mortage or invest the money instead, but personally, I’d prefer to have the mortgage paid off in full as soon as possible. Our mortgage is our biggest monthly expense and I’d rather not be in my late 60s by the time it’s paid off.
I do invest as well, but I use my own money, not joint money to do this. As the mortgage is a joint purchase, we use joint money to pay it off. Could I invest the money and make more, potentially yes, but what’s the point if I’m having to use it to continue to pay a mortgage off when I’m in my 60s? Mortgage freedom, in my opinion, will make it far easier for you in retirement because your income will reach that much further.
Not everyone likes the idea of investing their money either, so if you are super risk-averse, you can do a lot for “future-you” by paying off your mortgage faster. It’ll save you thousands in interest and puts you in a much stronger financial position for retirement.
My numbers (and how to get £5 towards your mortgage)
According to Sprive, if we continue as we are, we’ll pay our mortgage off 12 years earlier and save £24,119 in interest. I find this mind boggling because it really doesn’t feel hard to do at all. It’s just small amounts that regularly come out, or I can earn cashback through my regular shopping and the app does the rest.
If you want to try it, I have a code that enables you to get £5 towards your mortgage when you set up sprive. Just click this link to check out sprive (the code is already attached for you, but if you need it, here it is: DQWMDSZR).
Good luck! I’d love to know how you get on using this if you decide to try it. Feel free to comment below, or join my free facebook group and tell me there.
Until next time!
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