A mortgage is often the largest debt a person will take on, but strategic overpayments can lead to significant savings. One London homeowner is on track to save thousands in interest and reduce his loan term by over a decade using a specialized app.
How the App Works
Marlon Wijeyasinghe, 35, purchased his first home in 2024 with a £120,000 mortgage over 26 years. He uses Sprive, an app that links to his bank account to monitor spending and identify affordable overpayment amounts. The app also offers cashback on gift card purchases from retailers like Tesco, which is then applied as mortgage overpayments.
Marlon primarily uses the cashback feature for his grocery shopping. So far, the app estimates he has saved £3,822 in mortgage interest and shortened his term by one year and two months. If he maintains his current habits, projections indicate he will save approximately £33,000 in interest and cut over 11 years off his mortgage.
Marlon said: "I buy gift cards through Sprive since the cashback I get on the gift card is essentially a discount on my shopping. I've always been efficient with my money and so I will use whatever platforms available to improve my efficiency."
Making Overpayments Without an App
Overpayments can be made directly through your lender without using an app. Most mortgage providers allow annual overpayments of up to 10% of the outstanding balance without penalty, though terms vary.
Considerations Before Overpaying
Mary-Lou Press, NAEA Propertymark President, advises maintaining an emergency fund covering three to six months of essential expenses before committing to overpayments. If you have high-interest debts, it may be more beneficial to clear those first.
She added: "While reducing mortgage debt can offer both financial savings and peace of mind, tying up too much cash in a property can leave households with less flexibility if unexpected expenses arise. For many borrowers, the most balanced approach is maintaining a healthy savings buffer while making affordable, penalty-free overpayments where possible. Finally, make sure any overpayment cuts down the actual debt you owe, rather than just reducing your monthly payments."
