Sprive Raises $7.3M to Tackle Mortgage Overpayments

For homeowners who want to pay off their mortgage more quickly, Sprive is a mortgage management app. And it just takes a few minutes to set up Sprive, and it is totally free. It uses auto-saving to accelerate your mortgage freedom. Based on your spending, Sprive’s AI will automatically allocate funds. Pay your lender with a single tap.

The majority of mortgage lenders would prefer that borrowers not pay off their loans early. They earn their money that way, after all. Overpayment is, in fact, discouraged and occasionally even punished. What if there were a way to solve both the funding arrangements and the underlying technology?

The Sprive fintech app is based on that concept. This “mortgage overpayment” platform, which targets the UK market, uses cash-back incentives and automation to help consumers pay off their mortgages more quickly. Over the course of the mortgage, it promises to save consumers an average of £10,000.

Since its October 2021 launch, Sprive has closed a £5.5 million ($7.3 million) fundraising round headed by Ascension, a venture capital firm that bills itself as an impact investor. In addition, Ascension has invested in fintech firms Wagestream, SuperFi, DebtStream, Goodstack, and Credit Kudos (which sold to Apple), as well as mortgage startup Tembo.

According to Sprive, by automatically allocating extra funds for overpayments and regularly scouring the market to assist users in finding better mortgage offers, the app enables homeowners to pay off their mortgage more quickly through their regular shopping.

Customers can use a bank account connected to the Sprive app to make mortgage payments while making their regular purchases at popular UK supermarkets. To pay off a mortgage more quickly, they then make use of cash-back incentives, discount coupons, and other resources. It accomplishes this by enabling the user to reduce the mortgage’s interest costs and maybe shorten its duration by years. 

CEO Jinesh Vohra told TechCrunch, “Lenders are looking for creative ideas in the mortgage industry, but they depend on mortgage advisers for remortgages.” They use fragmented, nondigital mortgage counsellors to persuade a client to re-mortgage. Consequently, innovation is quite costly. However, they have access to their credit, mortgage, expenditure, and property information.

According to him, Sprive provides lenders with a more effective digital way to attract new clients. They profit each time a customer shops or changes mortgages. You can receive money toward your mortgage within 15 minutes of shopping, and we search the market daily for better mortgage offers. We receive a commission from the mortgage lender each time a consumer refinances.

Velocity Capital, Two Magnolias, and Channel 4 Ventures, the consumer investment division of the U.K. broadcaster Channel 4 were also involved in this round.