Exclusive:
A mum from Hertfordshire has found a new, easy way to pay her mortgage off 11 years early and save a staggering £125,833 in interest payments in the process
Data from TSB shows that the average age of a first-time buyer in the UK is 31, and the average mortgage term is now 32 years which means most homeowners won’t be mortgage-free until well into their 60s.
But while that may sound a tad depressing, the good news is there are ways to make huge savings on your interest payments and pay off your mortgage faster.
Rebecca Nicholl, 33, from Letchworth Garden City in Hertfordshire, has found an easy way to pay off her mortgage early and says it’s so simple anyone can do it. The mum to a four-year-old daughter and seven-month-old son – with another child on the way – says it has made a huge difference to her family’s finances.
And she says she’s worked out if she carries on doing what she’s doing she’ll save £125,833 in mortgage interest over 11 years.
The thrifty mum was browsing through Instagram financial influencer accounts when she came across a way to overpay the family’s mortgage without making too much effort. Rebecca, who works in digital marketing, but is currently on maternity leave, says: “Money is tight for a lot of people right now, so this was a no-brainer for me.
“We’re all told home owning is the goal but no one talks about the real cost of a mortgage that the interest rates add on. Anything I can do to cut overpaying for anything in this life, and to give me financial freedom for my family, I will do!”
After seeing influencers recommend it, Rebecca started using Sprive – a free app that uses AI to set money aside to help overpay your mortgage – by looking at an individual’s spending patterns. The app also includes Shop with Sprive, which enables users to earn cashback just by doing their normal shopping – and the free money they earn goes straight towards overpaying their mortgage.
She overpays using the AI function and uses Shop with Sprive to do her weekly food shop and also spends between £20 to 30 a week at other retailers through the app. She is on track to save £125,833 on her mortgage and pay it off 11 years 4 months early.
And the best bit? Just from the shopping part – no extra money being put aside by her – she is currently on track to save £28,350 in interest and take 2 years, 5 months off her mortgage. Shop with Sprive has cashback deals with more than 60 retailers, including supermarkets like Morrisons and Asda, high-street fashion and home stores including M&S, Primark, New Look, B&Q and Ikea, as well as food outlets like Costa and Just Eat.
How to pay off your mortgage sooner – expert tips from Sprive CEO Jinesh Vohra
- Make overpayments while doing your everyday shopping
- Put spare cash toward your mortgage when possible
- Make sure you’re on the best mortgage deal
- Shorten your mortgage term if you can afford to
- Consider remortgaging early if interest rates drop