Sprive, the mortgage overpayment app, is urging homeowners on variable rate mortgages to use any potential Bank of England rate cut later today to overpay rather than pocket the savings.
Jinesh Vohra, CEO of Sprive, said: “Around one in five (17%) mortgage holders are currently on variable rate mortgages, and if the Bank of England cuts the base rate tomorrow, their mortgage rate will drop as a result.
“And while it could be tempting to enjoy the lower monthly payments, those who can afford it should consider keeping their payments the same and using the saving to overpay their mortgage instead.
“Overpaying is one of the most powerful ways to become mortgage-free faster. Even small, regular overpayments can knock years off the term and save thousands in interest, helping mortgage holders reach financial freedom sooner, without stretching their budget.”
Sprive’s free app helps homeowners overpay using cashback from everyday shopping and a smart Auto Save feature that sets aside affordable weekly amounts. According to the firm, users save an average of £10,817 in interest.
New analysis by Sprive reveals that one in nine first-time buyers are now aged 45 or older, up from one in 27 four years ago. With most borrowing on 25 to 35-year terms, two-thirds will be paying mortgages into their 60s, and one in 20 into their 70s.
“People are getting on the ladder later in life – many because they are ‘wait to inherit’ buyers who are stuck renting into their 40s,” Vohra said. “Then when they finally do buy, they face the risk of losing income security due to AI’s disruption of traditional jobs. Carrying mortgage debt into retirement is becoming the norm – but it’s incredibly dangerous when future income is uncertain.”
Sprive’s data shows that 84.9% of first-time buyers in 2023/24 took on terms longer than 25 years, with 30.3% committing to 35 years or more.
Over 500,000 of last year’s buyers will be repaying mortgages beyond retirement age.
The findings also highlight increased reliance on inheritance and family support, particularly among older first-time buyers, with 18.9% of buyers aged 45–64 using inherited funds.
