UK-based smart mortgage app fintech Sprive recently raised £5.5m, or $7.3 million, in a Series A funding round. This investment is intended to help accelerate its innovative mortgage overpayment platform. Sprive focuses on users in the United Kingdom, enabling them to pay off their mortgages faster. The platform uses cash-back rewards and automation to lower repayment barriers.
Sprive’s platform makes it easy to regularly plan and process additional mortgage payments, straight from your bank account. You can do this easily on one trip with just a few UK supermarkets. This innovative approach makes it possible for anyone to earn money toward mortgage prepayments without having to think about it. Users can watch an effect on their mortgage principal within 15 minutes of a purchase. This fluidity and balancing of power is what makes their process fun and smart!
The round was led by Ascension, with follow-on participation from Channel4Ventures and Velocity Capital, as well as new investors including Two Magnolias. This investment will help cement Sprive’s mission. In fact, it helps Main Street users save tens of thousands of dollars in mortgage interest and/or lower their mortgage terms by decades. The startup claims it is saving its users an average of £10,000 over the life of their mortgages.
Sprive runs around-the-clock searches of the mortgage market to identify better deals. In this manner, users are educated on the optimal solution. This feature improves customer engagement and provides a major competitive differentiator in a quickly changing fintech landscape.
“Every time someone shops or switches mortgages, we make money. Within 15 minutes of shopping, you get money towards your mortgage, and we scan the market every day for better mortgage deals. Every time a customer refinances, we get commission from the mortgage lender.” – Jinesh Vohra
The new platform comes as part of a legislative push for fresh ideas in the highly-productive, but notoriously traditional, mortgage sector. Jinesh Vohra, the CEO of Sprive, noted that lenders have shown eagerness to innovate. Yet they continue to often reject newer alternatives and go to traditional mortgage advisers to pursue remortgages. Sprive harnesses technology and automation to fill the gap in home financing. This groundbreaking method allows consumers to spend and save money more wisely.
