I’ve been with monzo for just over 3 months and I am loving it so far. Only a few minor niggles but these aren’t a problem as I can still do more than with other current accounts I’ve had!
I’m looking to apply for a mortgage (only in the next 2 - 2 1/2 years) but I want to sort my finances properly now!
If I do go full monzo. Do your direct debits and standing orders automatically go into committed spending and are therefore not included in your “left to spend” or do you have to do all of this manually! Some of my direct debits only go out 2 weeks after payday so I don’t want to spend the money by accident!
That’s why I keep my other account at the moment, all my direct debits come out of there and all my money that isn’t spoken for goes in to monzo!
I was just thinking if I apply for a mortgage still doing what I am currently, it could be hard for the bank to look at my spending and money properly when it’s between 2 accounts
This is a total non-issue as far as I’m aware. When I was sorting my latest mortgage I had a few accounts and it was never a problem.
Monzo don’t currently report to all credit reference agencies which may be your main problem going full monzo but not too sure how that plays out, others may have more experience with this.
Monzo works just like that - D/D’s, SO’s and scheduled payments (one-off or repeating) are automatically classed as committed spending and so are removed from the left-to-spend amount displayed. The Summary calculates this using the reporting period set in-app.
I also slowly, and manually, switched over to Monzo but now I’m using the Monzo (Joint) account almost exclusively and slowly shutting down all the accounts I have. It makes like a lot easier!
Good luck with the Mortgage & - exciting!
Anarchist
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In my view, and speaking only for myself, this is by far the best option.
In addition to keeping your committed spend out of sight, you have the ability to access the features of the other account: paying in cheques without friction, paying in cash without a fee etc. Even if you don’t want or need these now, you might at some time in the future, and what is the downside of having a separate account for committed spend?
edit: And it could make it easier to save. If your income and committed spend are in a separate account, and you transfer an amount to Monzo for spending, when you get a pay rise, that will stay and mount up in the other account
That is a good point actually! I am hoping to get a promotion later this year, it may only work out as £100 extra but if I move the amount to monzo that I usually would do before the extra income, those £100 will build up out of sight!
When applying for a mortgage I’m guessing providing 3 months of statements from monzo and then 3 months from nationwide would be sufficient?
Left to spend is f…ing brilliant. Tells me exactly how much I really have, which means I can throw most of my underspend into a pot the moment I get paid and leave myself with a little fun money for the month (<£100 currently) and not worry about what happens to the rest. Building up a nice savings pot that way.
Exactly this. Unless they want more than 3 months for whatever reason. They many even just be happy with the 3 months where you get your salary paid in.
- exciting!
