Making regular mortgage overpayments can be a great way to save thousands of pounds in interest
A mortgage is probably the largest debt you will ever take on – but there are ways to make some pretty significant savings.
One man is on track to save thousands in interest and knock years off his loan thanks to an app he is using to make overpayments.
Marlon Wijeyasinghe, 35, from London, started using Sprive after he bought his home in 2024 with a £120,000 mortgage, over a 26-year term.
The app connects to your bank account and monitors your spending, to help you set aside affordable mortgage overpayments.
It also allows you to purchase gift cards with certain retailers to get a percentage cashback, which is then added to your account within the app and can be used to make mortgage overpayments.
Marlon mainly uses the cashback feature for his Tesco grocery shopping. Already, the app estimates he has saved £3,822 in mortgage interest and has cut one year and two months off the length of his term.
If he keeps up the same habits, it is estimated that he will save around £33,000 in interest and cut more than 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.”
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Of course, you don’t need to use an app to make overpayments on your mortgage – you can contact your lender directly to make an additional payment.
Most mortgage providers let you overpay by around 10% of your outstanding balance per year without incurring any fees, but this does vary.
There are things to consider before you make an overpayment. Mary-Lou Press, NAEA Propertymark President, said it is important to have an emergency fund in place, ideally containing three to six months’ worth of essential outgoings.
If you have other expensive debts, with high interest, it may also be more beneficial for you to clear these 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.
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