and 600k business customers… Im expecting business banking to be a big revenue driver going forward.
I work for an incumbent bank (sadly) and we just keep seeing the likes of monzo, starling, wise, allica bank moving further and further up the value chain. Big money to be made and a market the incumbents are doing an absolutely awful job of serving
Some of the legacy banks are just shooting themselves in the foot for no good reason.
To give an example, we had a call with our legacy bank mortgage provider asking questions about different fix or tracker options as our existing fix was coming to an end. We also asked about what we might be able to borrow if we were to move to a larger property and the impact that my recent switching to contracting would make. Apparently they need 12 months of solid contracting or 6 months of solid contracting with a year remaining on the contract.
Needless to say we won’t be taking a mortgage with them now when we move and will switch to their tracker product on our existing property to avoid early repayment charges ahead of any mortgage switch.
I’m surprised Monzo don’t offer mortgages, they must have enough capital in terms of savings to offer them now and it’s the last major financial product missing.
They probably have better options they aren’t telling you about 
. Speak to a mortgage broker.
I disagree,
Investors have been happy to pay 14 pound a share at a 4,5 bn valuation.
I expect earnings around 150 Mio for 2025, that would 10% of expected revenues and would surely justify a 6bn valuation
I agree, I think they are undervaluing it compared to competitors.
Revolut valuation is around 11x revenue, I would expect at least 10x revenue multiple but many factors involved when listing on the LSE.
LSE not great when it comes to valuations so the bankers might want to avoid what happened to Deliveroo where on the first day of trading the share price dropped c.30%.
However, shareholders who want to full exit won’t care and would want the highest valuation at IPO.
Also, £6m-£7m is the indicative valuation, given how the market is performing and investor appetite, if the IPO is oversubscribed then this could push the valuation further. Also, it indicates there’s a strong demand for the shares which means at IPO share increases significantly.
I’m not sure what you disagree with 
. You were replying by to a post where I was saying the valuation has significant growth assumptions baked into it.
As to the IPO valuation - which I’ve so far not really said anything about - I think £6bn is about right but it could be a bit higher too. I think they’ll go £6bn as it’s quite conservative, but once it hits the open market I think it may jump up to £10-£12bn quite quickly and I’ll be holding out for that.
I think you should absolutely be using a mortgage broker/advisor! I’m a contractor and had similar issues around length of time contracting etc and they very easily found multiple options for me. They’ve got the inside track on which lenders are more receptive to your particular situation…
Don’t worry, we will go through a broker when we get a larger place. For arranging a new deal on our existing place is it wasn’t really worth the hassle for a few months.
Nice one, you’re in for huge payout!… wish I did that🥲
It will be nice to see a share price movement (up?) - it’s been flat for almost 4 years
Nice one - £6-7 billion valuation gives you £70-80K, not bad at all. And £10 billion would be over £100K surely!
Not a bad return on £5k invested in total … Although I still feel it’s a low valuation! Lets see
I would be tempted to hold on to them (not advice) but typically they would probably then go down!
But if you sell them all I guarantee they will go up!
Biggest problem you are going to face is the capital gains tax - must be some strategies to help with that, any financial advisors in this community?
By that logic, if I sell half.. they will flatline. Good hedging strategy.
I can’t decide what to do, I think they will continue to increase in the long-run so i will likely sell a portion to bank the win
I’m actually studying to become a financial advisor, as it would happen! I’ve got a strategy for myself, but very conscious not to publish generic advice online as everyone’s situation is different
You can sell over a few years to maximise usage of the allowance. And if you have any shares that didn’t go so well, it would be good to crystallise and report the loss in the same year as taking out.
One note - be extremely wary of any generic ‘tax efficient structures’ you see advertised or spoken about online, despite the complete myth you can avoid all tax with trusts, llc’s etc - doesn’t really work like that - eventually HMRC will likely find you and fine you as they’ve been doing a lot recently.
Either get personalised, professional tax advice (likely not worth it for 100k anyway) or just pay the tax you owe when it’s time for the return.
There are a few things to look into, mostly to do with your pension. This depends if you’re willing to tie up the money until retirement or not.
Could you overpay into your pension, bringing your income level down and then use the shares as a top up? You would still have to pay CGT but it would be less and you get the tax benefits of the pension?
The annual capital gains tax allowance is £3k so use that if you can. If you have significant gains that’s not much help though.
It would take @WillsT about 25 years to cash in tax free haha!
Exactly - if you contribute to a SIPP the government gives you 20% (basic tax rate) relief immediately by way of a top up. If you’re a higher rate tax payer you can claim the difference between basic rate and higher rate tax back on your annual return
Not a perfect solution but Offsets a good chunk of the CGT.