Regular grocery shopping could help homeowners save thousands of pounds on their mortgage by using cashback to make overpayments.
New analysis shows that spending £500 a month on food shopping could cut mortgage interest by £6,487 and help clear the loan seven months earlier.
The system works by directing cashback rewards from everyday purchases straight towards the mortgage. This immediately reduces the outstanding balance, which means less interest is charged over time.
Even small cashback amounts can add up significantly, thanks to the way mortgage interest is calculated. By overpaying little and often, borrowers can shorten their mortgage term and cut costs without needing to spend extra.
Sprive's platform allows users to earn cashback through major supermarkets and high street retailers, automatically applying those rewards to reduce their mortgage debt.
A South London resident has already achieved significant mortgage reductions through this approach.
Christopher Lynch, aged 31 from Croydon, began utilising Sprive during summer 2023 to accelerate payments on his £190,000 home loan secured in late 2022.
His strategy involves channelling rewards from weekly expenditure of £30-40, primarily through Deliveroo and Amazon purchases, directly into mortgage overpayments.
Combined with automatic monthly contributions starting at £50, adjusted according to other financial obligations, Lynch has eliminated 2.5 years from his repayment schedule.
One homeowner has already cut 2.5 years off his mortgage by turning routine shopping into overpayments
|SPRIVE/GETTY
"I've already saved 2.5 years off my mortgage and I'm on track to save a good 3-4 more years, hopefully," Lynch stated.
He particularly values the platform's reliability and efficiency, especially when making larger purchases and managing changing monthly costs like council tax and annual bills.
Sprive's approach shows how even small cashback amounts can lead to big savings over time. The maths highlights how this works: on a typical £250,000 mortgage with a five per cent interest rate over 30 years, a single £5 cashback overpayment could be worth £22.50 in the long run.
This is because reducing the mortgage balance straight away lowers the total interest owed, allowing each pound to work harder. Over time, these small savings build up significantly.
Sprive's approach shows how even small cashback amounts can lead to big savings over time
| GETTYFor example, a household spending £500 a month on groceries could cut seven months off their mortgage and save £6,487 in interest, simply by using cashback rewards to overpay.
The key benefit is that it requires no extra spending or major lifestyle changes, just using cashback in a smarter way.
The Sprive application operates through partnerships with over 85 major British retailers, encompassing seven leading supermarket chains including Tesco, Sainsbury's, Asda, Morrisons, M&S Food, Waitrose and Iceland.
Users earn rewards by conducting their regular shopping through the platform, with cashback percentages varying by retailer - M&S Food offers four per ceton £125 purchases, generating £5 returns.
The system requires no alterations to shopping habits or increased spendin
| GETTYJinesh Vohra, Sprive's chief executive, explained the underlying principle: "Compound interest usually works against you—adding tens of thousands in extra cost over the life of a mortgage.
"But with Sprive, we are flipping it on its head and making it work for you."
The system requires no alterations to shopping habits or increased spending, simply redirecting existing retail rewards towards mortgage reduction where they achieve maximum financial impact.