Sprive, the UK’s only independent mortgage overpayment app, has successfully closed a £5.5 million funding round led by Ascension, with participation from Channel4Ventures, the broadcaster’s consumer investment arm, Velocity Capital, and Two Magnolias. This investment will supercharge Sprive’s ongoing mission to help homeowners in Britain repay their mortgages faster, helping to reduce household debt just as it hits an all-time high.
With 80% of UK household debt tied up in mortgages, the need for innovation in the mortgage space has never been more critical. Unlike traditional financial institutions that focus on getting people into debt, Sprive empowers homeowners to pay off their mortgages faster, reducing interest costs and boosting their financial freedom. With higher interest rates, millions of homeowners need new solutions to manage their mortgage burden more effectively.
Beyond this, former Pensions Minister Sir Steve Webb recently raised concerns about the rise in mortgage lending extending beyond retirement age. He warned that over 1 million mortgages issued in the past three years extend beyond pension age. The increasing trend to sell 30, 35 or even 40-year mortgages has placed a further ticking timebomb under people’s retirement prospects.
Launched 3 years ago, Sprive has quietly gained recognition in the financial sector as a unique offer to a growing problem. It was chosen recently by NatWest as one of just five fintechs to join its inaugural fintech growth programme, adding further validation to the company’s innovative approach to consumer mortgage management and increasing its growing influence in the industry.
Jinesh Vohra, CEO of Sprive said, “Sprive is set to have a huge positive impact on our customer’s finances, as our average user is already on track to slash three years off their mortgage term, collectively saving our users more than £100 million in interest alone. We’re proud to offer the fastest way to financial freedom for the homeowner and we’re determined to help as many as possible achieve it.”
The app works its ‘magic’ in three ways: by enabling homeowners to pay off their mortgage faster through their everyday shopping, by automatically putting spare cash towards overpayments and by continuously scanning the market to help customers find better mortgage deals. (More details are available here).
Strategic Investors with a shared vision
Ascension, known for its focus on social impact and fintech innovation, was an ideal lead investor. With a portfolio that includes mortgage disruptor Tembo, as well as fintech stars like Wagestream, SuperFi, DebtStream, Goodstack and Credit Kudos (exit to Apple), Ascension brings deep expertise in financial technology and consumer finance.
Jean de Fougerolles, Ascension’s Managing Partner, commented, “We’re thrilled to back Sprive in its mission to help homeowners take control of their finances. With mortgage debt becoming an entrenched issue, Sprive’s approach offers a tangible solution to a growing problem. Since downloading the App as part of our DD process, I’ve become a heavy user, taking money off my mortgage with every shop!”
The support from Channel 4 Ventures, the consumer investment arm of UK broadcaster Channel 4 and Velocity Capital, both consumer-focused investors, will allow Sprive to scale beyond its initial word-of-mouth growth strategy. By leveraging TV and streaming advertising, Sprive aims to drive mass awareness and shorten its path to profitability.
Vinay Solanki, head of Channel 4 Ventures said, “Our Untapped strategy is about finding solutions to mainstream consumer problems, the great problems that exist in society and in our view there’s no reason why every single residential mortgage holder in the UK should not be using Sprive.”
Rajeev Saxena, CEO of Velocity Capital said, “Velocity is passionate about investing in companies that genuinely fulfil a consumer need. Sprive does this without question and will truly disrupt the mortgage market and beyond to the benefit of the homeowner.”
The UK mortgage industry has seen fintech investment dwindle, with digital mortgage brokers like Habito, Trussle, and Mojo struggling to meet investor expectations. Unlike these firms, Sprive has taken a unique path, focusing on direct consumer engagement, low acquisition costs, and strong strategic partnerships.
Read the orginal article: https://ffnews.com/newsarticle/funding/uk-fintech-sprive-raises-5-5m-in-funding-to-help-millions-repay-their-mortgage-faster-saving-a-fortune-in-interest/
