Man set to slash £18,000 interest and pay off his home two years earlier

Ben Byrne, 24, from Redditch, bought his second property for £292,000 in September 2025, taking out a £248,200 mortgage.

A year later, he discovered Sprive, a free cashback app that helps homeowners make mortgage overpayments.

Cashback earned through his food shopping, meals out and gift purchases now goes towards reducing his mortgage balance.

Mr Byrne said: “I use it every week for my food shop and wherever possible when eating out or buying gifts. It’s become part of my normal spending routine, so I’m earning cashback on things I’d be buying anyway.”

In his first six weeks, he earned £120 in cashback and made a further £1,700 in overpayments from his own savings.

Together, those payments have put him approximately a year ahead on his mortgage. That progress reflects both the cashback and the additional money he contributed himself.

His target is to earn around £50 a month through the app. At his current cashback rate, he is on course to save £18,000 in interest and shorten his mortgage term by two years and four months.

Mr Byrne said the cashback offered a way to make extra payments without setting aside more money from his monthly budget. It also encouraged him to make further overpayments from his own pocket.

He plans to continue over Christmas.

Mr Byrne said: “I’ll definitely be using it for all my Christmas shopping this year. Any gifts I can buy through Sprive, I will!”

His experience comes after the Bank of England raised its base rate from 3.75 per cent to four per cent, its first increase in more than three years.

Governor Andrew Bailey said the decision “shouldn’t be seen as the first in an inevitable long sequence of hikes”.

However, he warned that “unless the conflict in the Middle East is resolved, neither does it seem likely to be the last increase”.

Borrowers approaching the end of fixed deals could face substantially higher repayments when they refinance.

Jinesh Vohra, chief executive of Sprive, warned that competition between lenders would not necessarily shield homeowners from those costs.

Mr Vohra said: “While lenders are competing hard for business, homeowners shouldn’t assume that competition alone will protect them from higher mortgage costs.

“Those coming to the end of a fixed deal need to start reviewing their options early, rather than leaving it until the last minute and risking being pushed onto a more expensive rate.”

MoneySavingExpert Martin Lewis urges homeowners to carry out two essential checks before increasing their payments on their mortgage. Most lenders permit overpayments of up to 10 per cent of the outstanding balance each year without charge, but this is not universal.

Exceeding a provider’s set allowance can result in “penalties which could wipe out much of the gain,” Mr Lewis warns.

These fees typically range between 1 per cent and 5 per cent, making it vital for borrowers to review their contract terms carefully.

The stakes are heightened by the possibility that borrowing costs could climb further still.

Mr Bailey’s warning that rates are unlikely to stay at their current level unless the Middle East conflict reaches a resolution means homeowners may face even greater pressure in the months ahead.

For now, tools like Sprive and careful overpayment strategies offer some breathing room in an uncertain landscape.

Making extra payments can reduce the amount owed and the interest charged over the life of a mortgage, although finding spare money is difficult for households already under pressure, he said.

Mr Vohra said: “That’s why using cashback from everyday shopping to make additional mortgage payments can be a useful way to chip away at the balance without putting further pressure on monthly budgets.”

He added: “Homeowners can’t control the Bank of England’s decisions or where mortgage rates go next, but they can take steps to make their mortgage more manageable.

“The sooner they start, the more they could save over time.”