Mortgages 🏠

(Richard Cook) #23

Hi there, just to clear things up - this thread isn’t to announce anything super new. At the start of the year we wrote a blog post with our plans for 2019, which included exploring mortgages.

We’ve now added that to our official roadmap, which links here. So this is the place to follow along for updates as we get them.

Hope that clears things up!

(Jordan) #24

I take your point, but it doesn’t appear that these Mortgages will be a Monzo product and more an integration with brokers.

Also with things like Monzo Plus/ Business/ ISAs - they all tackle different customers and likely to have their own teams working on them and getting them ready.

They’re definitely in the test phase and so I’d rather see a lot of stuff being tested to see what sticks than only 1 or 2 things that my not apply to me being really looked at.

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(Marcus Nailor, Hot Coral Detective) #25

Just began “watching” a few upcoming bits that I’d not seen make their way into the roadmap :stuck_out_tongue:

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(Jordan) #26

Also, by the looks of that picture @nexusmaniac and what @cookywook has suggested, we might not be looking at the “best” mortgage rates out there, but a more seamless and customer-friendly way of re-mortgaging at the end of a fixed rate, or when BoE Base Rate changes. This could eventually save £1,000s over the course of a mortgage - i.e. arguably a better incentive than a 0.25% better fixed rate product.


This is very much a sweeping generalisation, but it’s too early to expand on it right now :joy:

I feel this will work best for those people who might not be as “on it” when it comes to the mortgage side of things.

For me (and a lot of others I know), the 1 or 2 hours of “hassle” sorting out the mortgage for the next 2/3/4/5 years (whatever it may be), is 100% worth it, if the alternative is a more expensive monthly rate.

With something that is likely to be people’s biggest expense, that extra 0.25% can really make a difference.

I guess comparisons could be made with the “Monzo Loans” feature - Likely not the best rate on the market, but it’s easy to use.

That being said, if Monzo are simply “recommending” a broker, then you’d hope the rates would be market leading (in as much that a broker should have access to these rates).

(Jordan) #28

Oh 100% it was designed to be - it is hard to quantify anything at the moment so I was trying to make an overarching argument for why this may be beneficial.

I think it could also work for people who are “on it” as well as shortening the process and being able to do it with (hopefully) good brokers and not having to go through some faff (even If you want to do it) is surely helpful?

Oh definitely, but if you could secure say, a 0.20% better rate and the actual process has been shortened and you are reminded about the end of term etc - I see a real value here.

I agree here, the advantage of creating a more seamless process does need to be backed by a good rate.

(MikeF) split this topic #29

2 posts were merged into an existing topic: Cannot verify telephone number on app

(Toby Foord) #30

I’ll be really excited to see where this goes!

Having used Habito for my last renewal, I’m all for a low friction, web/chat based application process.
I might not have got THE cheapest deal, but it was pretty damned good and I didn’t have to spend an hour and a half face to face with an “advisor” to justify why I wanted to add 5k to the balance (the proposal I was threatened by with Nationwide!).

Now if you could find a way to sack off the conveyancers too I’d promise to never look at another bank!
#monzogamy (coining that if no one else has)

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(Kris Littlewood) #31

I emailed some feedback about the mortgages test a few weeks ago. I have a mortgage broker who is pretty hot on reviewing our mortgage options, but I always check to see what is available on the market so I would use a mortgage comparison feature. Especially if it is really easy to use.

One idea to help mortgage management would be to assist with managing mortgage over payments and the calculations of how much you could save on the mortgage term by over paying say a fixed amount e.g. £25 extra a month or a set percentage e.g. 10% (the maximum I am allowed to overpay). I think if people realised by paying a little extra they would clear their mortgage years early and save £££ then more people would do it.

It could be as simple as collecting details about your mortgage in the app and they showing tips or a calculator tool when you look at the details of your monthly mortgage payment DD or SO, then when mortgage product renewals come around you already have the details of the existing mortgage for a comparison.

(Adam) #32

I’m currently one of the Monzo mortgage guinea pigs. They’ve hooked me up with Habito.

Nothing in app yet and other than setting me up with the broker I’ve not been asked to give any other feedback.

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(Jamie 🏳️‍🌈) #33

I agree with the concept of “if people knew about overpaying…” but would mortgage lenders line up to work with :monzo: Monzo if in the same app there were instructions on how to not pay your lender £1,000s?

I get that there’s nothing stopping anyone overpaying (if the Ts&Cs allow) but it’s not usually written out as part of the set–up.

(Marcus) #34

Had the same problem with my amex a couple weeks ago and they don’t do ISA or mortgages so I don’t think its a Monzo issue and more of a ASDA trying to stop fraud issue.

(Kris Littlewood) #35

Possibly not but it certainly fits with monzo’s mission to “makes money work for everyone”. Money saving expert has a mortgage comparison tool and an overpayment calculator, granted they are separate tools. I just think it could be a way for monzo to demonstrate they are looking after their customers that have a mortgage, even if they haven’t bought the product through the monzo mortgage comparison service.

(Corrine) #36

Currently looking for a mortgage with my partner who introduced me to Monzo… I’d love to know more!

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(Matthew Harris) #37

I have mixed feelings about mortgages in Monzo… in my experience the stress and paperwork is less about the finding a mortgage or the application but more about the conveyancing process: that is an industry that is definitely ripe for innovation, there is far too much asking for the same information again and again.

Having said that the savings to be made by being on the optimal mortgage product are massive compared with other switching services for utilities which at best save only a few hundred pounds a year.

(Andy Slater) #38

Maybe instead of offering mortgages, monzo could become, or team up with, a broker.

All the necessary documents could easily be stored in app so that the customer wouldn’t need to reproduce everything at the end of every fix period. The only question i see is around security of those documents.

We’ve always stayed with halifax, which has been fine, but the current provider can always charge a little more for the convenience of not switching and going through all the paperwork again

(Splodf) #39

This has already happened.

I’m on the Beta for this and they’ve teamed up with three brokers.

(Glenn ) #40

Well as an Independent Mortgage Adviser /Broker - I hope it doesn’t take off too much! However the last couple of mortgages I’ve done have been quite difficult and fairly complex. Any kind of robo advice just would not have worked!

At end of the day if computer says no you need human intervention!

(Kevyn) #41

I used Habito recently to get my mortgage and it was very simple and I went from application, valuation and offer in only 4 working days (application to Habito on a Friday, Habito’s application to Atom Monday, Atom’s valuer visited the property and sent the valuation to Atom on Tuesday, got my mortgage offer Wednesday). Can’t say much better than that. All electronic and online and I would rather do that than long telephone calls to brokers/mortgage companies or having to visit in person.

Solicitors of the other hand were dreadful.

(Adam) #42

Could you imagine if a conveyancing solicitor was amazing? They’d make an absolute killing!