There is a new service on the block that could knock thousands of your mortgage just by shopping online. Accelerate My Mortgage, launched last month and could help your money go a little further during the lockdown.
Related: The government announces three-month mortgage holidays during the coronavirus pandemic
The new Accelerate My Mortgage service from broker Rateswitch helps you pay off your mortgage early through cashback on online purchases. Any cash back you earn on a purchase will be put towards overpaying your mortgage.
Accelerate My Mortgage
However, since overpaying a mortgage might sound like a pipe dream to many under the current circumstances, the service has changed its model slightly. In the short term, instead of putting the cashback towards overpaying your mortgage, it will be paying any rewards directly into your bank account to use as needed.
Many popular retailers such as Boots, ASOS, John Lewis and Superdrug are already signed up with the service. With most of the population currently relying on online shopping, this new service sounds almost too good to be true.
So what's the catch?
The service is entirely free, however, you will need to sign up with mortgage broker Rateswitch. They will recommend deals to remortgage to when yours comes to an end. However, as the borrow, you are under no obligation to use them and can continue to use Accelerate My Mortgage.
The other two pieces of small print are that you have to make any purchases through links on the Accelerate My Mortgage's website. Also, you need to have built up £50 in cashback before it can be used to pay off your mortgage.
Is it worth it?
It is easy to see the benefits of overpaying a mortgage as it will help you to save thousands on interest. However, it might take a while to build-up to the £50 cashback limit.
Any purchase under £100, will offer a very small cashback reward. For example, the 2 per cent cashback offered by M&S on an £80 shop will leave you with only £1.60.
However, if you are planning any large one-off purchase they could make a huge difference. A new sofa priced at £1,099 from John Lewis would earn £76.93.
Related: Martin Lewis reveals his top tips for getting a mortgage as a first-time buyer
Will you be signing up?
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