Affect my credit rating?

Claire_E

Hello there

I'm after a bit of advice as I've been told conflicting things...

I will be looking into getting a mortgage in a years time and am saving for a deposit at the moment with my partner.

I have been with my bank since birth and am not happy with the service they provide or the amount of interest I earn on my money when there are better deals elsewhere.

Will it affect my credit rating and chances of getting a mortgage approved if I switch banks now?

I will be changing career as well which means that my work may be freelance so is it best to stay with the bank I'm with now or change to get a better deal?

Help!

Thanks

HGLTsuperstar

No effect, providing you're not overdrawn and bouncing direct debits etc!!!. If your account is in credit, then no impact. May be best to change bank before you go freelance, as might be harder to prove income etc after

herbiesjp

However, having had a bank account for a long period of time can improve a score on a lenders scoring system when they come to look at agreeing the mortgage and how much they can look at lending you.

Bun

Dependent on the terms and conditions of your account, there is no reason why you could not open a more efficient account, whilst keeping the other one open. I personally have my older account for pay and direct debits, but transfer any spending money to another account for daily use so I don't get in a mess. That way you keep the longevity on your record.

stanmoresaver

Claire_E wrote:

I will be changing career as well which means that my work may be freelance so is it best to stay with the bank I'm with now or change to get a better deal?

I would venture to suggest that the becoming freelance will have much more of an impact than any changes to your current account.