I have two mortgages in Monzo and both have reduced significantly in equity valueā¦ My assumption is that the original equity calculation was incorrect and has been fixed, rather than it being down to a shift in market valuations.
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Hi folks - thereās a couple of things at play here:
- We previously werenāt updating your property value on an ongoing basis once you connected (it would refresh though if you disconnected and reconnected your property
- Weāll be looking to refresh all the key data points roughly every month now moving forward and generate some helpful insights along the way, like I gave a sneak preview of in this post
- The house price data released most recently shows the likes of London had a pretty significant monthly drop of about 3% which has had an impact on our refreshed data
As @caribo said, weāre doing a little tweak to some of the logic over the coming days so Iād welcome your thoughts as it settles down!
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Thank you replying, nad clarifying. Especially on a Sunday! The āprogress over timeā sounds very useful.
Does that mean the price calculations are regional? So it wouldnāt take into consideration for instance my flat is in Camden, rather than Islington, for instance?
No problem at all! In terms of data - we use the structure set out by the UK House Price Index produced by the Office for National Statistics 
From one of their pages:
The UK HPI dataset contains information on more than 441 areas in England, Scotland, Northern Ireland and Wales.
In practice, we try to use the most granular data, local authorities, which divides the UK in to >300 segments. So for your example Camden and Islington are both independent local authorities so will be reported differently - it looks like Camden has been much more volatile than Islington over the last 6 months!
Separate point is we also try to do our calculations based on the property type (i.e. detached house, semi-detached house, terraced house vs flats/maisonettes) to make it a better like-for-like comparison 
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@hldn90 & @caribo - weāve tweaked the property values today (last time!) 
Next update will happen in a few weeks when Novemberās data gets published by the Office for National Statistics 
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Nice! Luckily it has moved on a positive direction than a negative one for me
The new figures seem much closer. Interestingly my mortgage lender calculates my current LTV at 8.95% and monzo calculates at 9.3% ā¦ So not a million miles apartā¦ ,
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My house is currently on the market so Iām curious just how close to Monzoās estimated value we get! Iād guess its within 5k
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Yeah the updated figure looks a lot closer to what Iād expect to see. The old value felt too high.
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Now Iām curious too! In conditions like this, it is hard to estimate vs the previous 10 years where things were just constantly moving up. Hope it all goes well! 
Iāll take that!
What will this showā¦.12months 24 months ?
When will this be live ?
Home updates are now live!
Weāre starting the year with a bang 
with the launch of āHome updatesā - we hope you like it!
Before
Previously, once you had connected your property the estimated value was static even when we updated our valuation logic every month or so when the Office for National Statistics released their latest data.
In the (ahem) turbulent property market that weāre experiencing right now, we think it is important to give folks a more up to date view of whatās going on. BUT, we didnāt want to just update your numbers in the background and for you to not know why your equity may have changed significantly since you last logged in.
What weāve launched 
With home updates - you can always find a summary of your key insights like:
-
Progress over the last 6 months (how much youāve paid off, the estimated home value change and therefore your home equity change)
-
Progress since you bought your home (your property value, equity and loan to value which decides what mortgage rate you can get)
-
Weāll also send a notification every few months to let you know when it has been updated (but the data will change each month)
Why weāre doing this
We think this can be really powerful to help people understand some of the shorter term changes but most of all celebrate the progress theyāve made in their home-buying journey 
You can find it at any point by tapping āSee progress over timeā
Looking forward
Iād love to do more to celebrate progress when you come back in like:
- Youāve now reached Ā£50,000 in equity!
- Your loan to value has dropped below 90% and youāre on track to unlock new rates
And inevitably many of you will be asking about graphs 
to you I say, not yet but all feedback welcome! 
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This is amazing! Such a cool update. Great to see the loan to value percentage, and will help planning mortgage deals etc.
I love data like this. Maybe over time it can user even richer data from ONS like property type and postcode level (maybe it does the former already?)
And yes, graphs would be amazing at some point.
Edit: I see you use property type already, sorry! Interestingly though, if I download the ONS data, I canāt get it to match. But thatās probably something Iām doing wrong!
Interesting - it is working for us, are you on iOS or Android? Weāll do some digging!
Hmmm - did you have the incomplete version on Equity & Loan to Value with āFind outā buttons (left) or the numbers already calculated (right)?
That does sound a little odd, which we hadnāt seen, did you carry the mortgage from a previous property / ported it?
Amazing work. I think mortgages in Monzo is my new favourite thing. Iām currently at Ā£0 paid (new mortgage) so excited to see and try the new features when TransUnion update soon. I would love a graph or two at some point too 
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Weāve just done a quick brainstorm at Monzo HQ and think the two are relatedā¦
Were we able to find your property transaction originally (you donāt need to reveal anything personal)? There are some cases where we canāt
- Scotland and Northern Ireland
- If the record isnāt available at the Land Registry
Back when we launched early on we asked for the estimated value now without asking for purchase date which we have since added in. I think youāll be able to resolve this by removing the property and adding it back again
I really like this feature. The flow for removing my estimate to go back to the Monzo one was great. Would love to see graphs too.
One minor issue I noticed is that any text which displays the area Iām in (York) isnāt capitalised. As an example, the āhow we estimateā section does this but I think I also noticed it elsewhere.
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I love having my mortgage within Monzo, itās so easy to see what I need.
I have a question regarding where you can see what you would pay with different interest rates.
Does anyone find they match up with other calculators? My monthly amount seems to be wildly cheaper in Monzo than any other calculator. Hundreds out. Am I missing something I should know/take into account?
Nice idea, but I canāt help but think these valuations give people false hope. My lender Halifax gives their own valuation, Monzo is 5% higher. Which might not sound a lot, but it is at London prices. Halifax I believe are using their own index, which is more localised than ONS data.
You make a great point! 
I donāt think any valuation is inherently perfect, all you need is to consider two estate agents with different listing photos, a desperate seller or keen buyer to consider that thereās things outside of any valuation model that will impact an agreed sale price or indeed the valuation that a surveyor sent by a lender gives.
In general, weāre favouring financial empowerment by offering folks more information to help them understand their situation better, especially if it has been a while since they bought their home and they donāt have a benchmark (or Halifax) to give them an estimated value - and we make it clear that you can easily edit which Halifax donāt on their āequity viewā.
In my own situation, my Halifax valuation was pretty solid compared to my own understanding but Metro was considerably off the mark even when I had moved onto them recently 
For whatās it worth, I do think >300 segments give us a strong foundation and thereās varying opinions of which indices are most relevant in a given scenario:
- Lender indices (by definition) are only mortgaged transactions and have biases towards their lending policy & residential mortgages and are seasonally-adjusted
- ONS covers all transactions and donāt apply any seasonal adjustments
I wouldnāt normally defer to a Forbes article but I think they do a reasonable of summarising the approaches in case youāre interested - it gave me some good evening reading!
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