UK Fintech Startup Sprive Secures £5.5 million to Help Homeowners Pay Off Mortgages Faster

Sprive, a fintech startup in the UK, has secured £5.5 million in recent funding to help homeowners pay off their mortgages faster and at a low interest rate, according to Fintech Finance. Sprive is the UK’s only independent mortgage overpayment app, and it aims to reduce household debt, which is now at an all-time high.

This funding round received backing led by Ascension, and other investors like Channel 4 Ventures, Velocity Capital, and Two Magnolias.

Helping Homeowners Save on Interest

Sprive offers a smart and simple way for users to reduce mortgage debt. The app helps homeowners make overpayments using their daily spending habits. It also puts spare money toward the mortgage automatically and looks for better mortgage deals.

Jinesh Vohra, CEO of Sprive, said, “Sprive is set to have a huge positive impact on our customers’ finances. Our average user is on track to cut three years off their mortgage term and save over £100 million in interest combined.”

Sprive was launched three years ago and has already received strong recognition. The fintech company’s fresh approach to mortgage management is gaining trust within the financial industry. It was recently selected by NatWest as one of five fintech companies to join its first-ever fintech growth program.

What sets the Strive mortgage app apart is its goal to help customers fulfill loan payments. These days, most finance apps promote new debt acquisition in traditional banking systems. Currently, 80% of household debt in the UK is from mortgages. As more people select extended 30 to 40-year mortgage periods, their future retirement financial burden increases. Former Pensions Minister Sir Steve Webb warned that over 1 million mortgages issued in the past three years extend beyond retirement age. He called this a “ticking time bomb” for people’s retirement plans.

Backed by Strategic Investors

Sprive’s new funding comes from top investors who support its mission. Ascension leads investor activities by seeking startups whose operations deliver a positive impact. The investment firm has provided financial support to fintech startups, like Tembo, SuperFi, and Credit Kudos, in the past.

Jean de Fougerolles, Managing Partner at Ascension, said, “We’re thrilled to back Sprive. Mortgage debt is a serious issue, and Sprive offers a real solution. I’ve personally started using the app, and I’m now taking money off my mortgage with every shop!”

Channel 4 Ventures announced its participation in the funding round. The company actively backs businesses that address major consumer problems. “There’s no reason why every residential mortgage holder in the UK shouldn’t be using Sprive,” said Vinay Solanki, head of Channel 4 Ventures.

Velocity Capital also invested, showing confidence in Sprive’s growth potential. Rajeev Saxena, CEO of Velocity Capital, said, “We invest in businesses that truly meet a consumer need. Sprive will disrupt the mortgage market and give power back to the homeowner.”

Sprive has adopted a business strategy that differs from its struggling competitors, Habito and Trussle. The strategy relies on direct customer interaction, minimal marketing expenses, and industry partnerships. This distinctive strategy has enabled steady, profitable growth for the company. The UK fintech startup stands ready to assist millions of British homeowners in reducing mortgage expenses and achieving financial independence.