When making extra payments back against a Monzo loan, the app will automatically recalculate your extra payment and spread the payment out over the term of the loan. This means the interest savings from your extra payment are reduced and there is no option to change this behaviour.
Is this behaviour compliant with financial regulations? For example, credit cards were forced to ensure payments would pay off the highest APR balance. The way Monzo opts to apply these extra payments is not in the consumer’s interest and that typically doesn’t fare well with regulators