How to pay off your mortgage
By: Jinesh Vohra, Sprive
Oh to have a mortgage-free life. It’s certainly something that lots of homeowners dream of, yet many people think is an impossibility and only something for the already wealthy to benefit from. Or is it?
Paying off your mortgage early may not have even filtered on to people’s radar’s in the last 18 months following the pandemic, but there is hope on the horizon for thousands of homeowners who could, quite feasibly, turn the dream of being mortgage-free into a reality.
And the good news is that it can be done much sooner than many people think.
Saving on bills, careful budgeting, being clever wish cash investments and even side-hustle funds can leave borrowers with valuable extra funds each month that can effortlessly be put towards mortgage repayments, and importantly, helping them live debt-free sooner in life.
But following the introduction of the first 40-year fixed mortgage just a few months ago, being saddled with debt for many more years to come is the grim reality for many people, and this is something that should be addressed and planned out much sooner in life agrees Jinesh Vohra, CEO of mortgage payment app Sprive.
Jinesh says: “I know of so many people who have winced at the very thought of trying to make overpayments because for so long, it has been a painful process that isn’t very transparent– and we wanted to change that and disrupt the market. With technology at our fingertips to check, process and transact almost anything we want, the mortgage sector has been a left behind, and that’s why it’s now time for change.
“Over-paying on a mortgage can not only help people pay it off faster, but it can also save thousands of pounds otherwise paid in interest over the long-term.”
Jinesh goes on to say that the sad reality is that the earlier homeowners are in their mortgage journey, the more interest will be paid because lenders front load interest at the start of a new mortgage term.
He adds: “We believe that more needs to be done to educate homeowners. Many don’t realise how much of their monthly payments is actually made up of interest in the earlier years of a mortgage, and that they save much more money if they regularly chip away rather than paying it off in large chunks later in life. It’s also a great way to make money work hard compared to earning very little interest by keeping funds in a bank account.
“With Sprive, users link their bank account and money is automatically set money aside towards their mortgage – within limits set by the individual. The less that is spent, the more the app sets aside without impacting the users’ lifestyle, and the faster users chip away at their mortgage, the more years and interest is saved.
“People can then send the money directly to their lender with just one tap and users can track their savings and how much of their home you own via the app. The app will also help people monitor the loan to value (LTV), to help users increase their chances of unlocking cheaper deals next time they re-mortgage.
“Payments this way are a lot smarter than making ad-hoc payments or setting up a direct debit. With Sprive, we help people save more as its algorithm takes into account spending and adjusts the amount accordingly to help them pay the perfect amount towards their mortgage each month.
Touch of a button
“It’s a win-win situation for so many people yet not enough are taking advantage and that’s where the app comes in. Certainly, the sooner people start over paying, the more money they will save, enabling more people to be mortgage free at the touch of a button, rather than having to do everything manually.
“As with all financial decisions, it’s important to ensure you can afford to make over-payments and that more expensive debt such as credit card debt is prioritised. Healthy financial management is our goal with the ambition to help as many people as possible become mortgage free.
On a mission
“The app certainly isn’t designed for the super-rich or even those who are on variable or tracker mortgages – even if you are on a fixed rate deal overpayments* can be made
“Ultimately, the lower the mortgage is the more control people will have over their lifestyle. And, of course, being mortgage-free brings with it peace of mind – there’s no worry about home repossession should your circumstances change.
“Mortgage freedom is a real possibility and we’re on a mission to make it happen.”
NEWS3 days ago
IKEA stores owner Ingka starts on first New Zealand store
NEWS2 days ago
Vodafone faces German probe over suspected obstruction of 1&1
NEWS3 days ago
UK house prices fall by most since 2009, higher rates to bite-Nationwide
NEWS3 days ago
Hungary looking for ‘friendly’ co-investor to acquire Budapest Airport