I had a similar issue with salary in the past when applying for a Monzo loan.
I pay additional contributions to my company pension as a salary sacrifice so when I declare my income e.g. I earn £20,000 but only £1,000 is paid to me net then I used to get a message saying Monzo needed more info on my income because the numbers didn’t match; of course they didn’t match that’s because, Monzo, you didn’t ask me what my take home is, you asked me what my salary is and I told the truth.
TLDR; Reduce the risk of us overestimating what we calculate your salary to be. Some calculation methods also require an input from which to start from and assess confidence against.
Leaving the terms aside for a second, I think it’s generally agreed that Monzo gives the user more control, has a better interface and provides real time visibility.
If I want to make overpayments on my current loan I have to call up, state how much I want to pay and then they will recalculate.
I don’t know how many others do this but I do like the idea of Monzo doing it on the fly. Throwing bits of extra money made from roundups and stuff to chip away at it faster sounds really good.
Most other loans will hit you with an Early Repayment Charge if you settle using an overpayment. It’s obscure because they might not charge you this if you repay everything less one month’s direct debit amount. In short, most other loans are a faff and rely on users being very on top of the terms.
I think this sums it up perfectly… Any regular here will know I am a fan of Lloyds Bank and they have similar functionality where you can overpay or repay in full anytime in the app but some of the functionality is definitely not in real time.
If Monzo are not only allowing this without extra charges but are also showing real time updates then they are definitely bringing something of an improvement over other banks
I’ve probably missed this further in the thread, but does anyone know if it’s possible to get multiple Loans at a time with Monzo?
I’m tempted to move some spend that’s on my Tymit card, as the rate is marginally better for the same amount with Monzo - but would probably not if I have to wait for that loan to move before I could get another.
I can’t seem to find a definite ‘yes’ or ‘no’ answer to this one, but I have a loan and the entry to apply for a loan in the ‘Your Personal Account’ listing in the Accounts Overview display isn’t there:
So, logically, it must only be available if you don’t have a loan - meaning you may only be able to take out one loan at a time.
Up above in the topic, ‘Loan top-ups’ have been mentioned and it looks like they’re being worked on, so you may at some point (if you already have a loan) be able to borrow more
loan and the entry to apply for a loan in the ‘Your Personal Account’ listing in the Accounts Overview display isn’t there:
