Should I switch from Natwest to Halifax?

James129

Hi folks, I am just looking for bit of advice.

I have been with Natwest for roughly 4 years. I started with step account and had wages paid into it for roughly 2 years and then in January this year, I went to a branch and they encourged me to upgrade step to current account which I did. So now I have current account, step account (will close it soon), e-savings and ISA account with them.

The reason I am looking to switch is, I don't get any offers from Natwest on my online banking. Even for the current account, I had to pop into the branch. And I fear, if I stick with Natwest, I'll not be offered mortgage in due time. I am looking to get a mortgage within 2 years time with a deposit of around 25-40%.

I had opened halifax web saver earlier this year and moved big part of my savings to that account and just last week I have opened Halifax rewards account.

Do you think is it worthwhile to switch my current account? From what I have read here, Halifax does offer products based on internal score.

Just a bit of background, I am orignally from States. I have been on electoral roll and have held cap1 progress and barclay initial for almost a year and been building up my credit history nicely by always paying in full. Have held mobile contract for almost 3 years and all reported to CRAs. No nasties on credit report.

Cheers

chambta

If you want to move for whatever reason, of course that's your choice, but you're unlikely to increase your chances of getting a mortgage by doing so.

What 'offers' do you expect to get online and what would Halifax do differently?

If anything maintaining an account with a bank is likely to help your chances of a mortgage being agreed. You will be starting afresh with Halifax whilst you already have four years relationship with Natwest.

James129

chambta wrote: »

If you want to move for whatever reason, of course that's your choice, but you're unlikely to increase your chances of getting a mortgage by doing so.

What 'offers' do you expect to get online and what would Halifax do differently?

If anything maintaining an account with a bank is likely to help your chances of a mortgage being agreed. You will be starting afresh with Halifax whilst you already have four years relationship with Natwest.

The only products I'd like would be credit card and a mortgage. I don't need loans and overdrafts.

Also Halifax customers get pre-approved offers on their online banking which isn't the case with Natwest.

I am not after competitve products but rather want to keep my finances as simple as possible by sticking with a single bank who values internal behaviour as much a external.

chambta

James129 wrote: »

The only products I'd like would be credit card and a mortgage. I don't need loans and overdrafts.

Also Halifax customers get pre-approved offers on their online banking which isn't the case with Natwest.

I am not after competitve products but rather want to keep my finances as simple as possible by sticking with a single bank who values internal behaviour as much a external.

I wouldn't read anything into the pre-approved offers. Natwest's also have internal scores that you don't get to see, the same as any bank.

What makes you think Halifax value internal behaviour more than Natwest? You've puzzled me there.

YorkshireBoy

James129 wrote: »

I am looking to get a mortgage within 2 years time with a deposit of around 25-40%.

I am not after competitve products

These two statements seem to contradict one another?

And I fear, if I stick with Natwest, I'll not be offered mortgage in due time

There are many providers offering mortgages. NatWest are just one of them. Why are you so keen to keep all your eggs in one basket? You need to get out of that habit before it damages your wealth!

If you do decide to switch banks you may wish to keep a NatWest current account open so you can answer the 'time with bank' question as 6 years, not 2 years (in 2 years time when you go for your mortgage).

pinkdalek

Just out of interest do you pay over £1000 in your Nat West account? If so what do they give you back?

You would get £5 a month reward with Halifax, plus an additional 0.2% interest on your savings. They also offer discounted rates to their current account customers on their mortgages.

If you were going to switch contact the branch see if they have any incentive for you to switch current accounts. Often you can get a cash incentive just for letting them switch your direct debits.

Might be worth looking at what the other banks can offer you too for switching current accounts.

James129

YorkshireBoy wrote: »

These two statements seem to contradict one another?There are many providers offering mortgages. NatWest are just one of them. Why are you so keen to keep all your eggs in one basket? You need to get out of that habit before it damages your wealth!

If you do decide to switch banks you may wish to keep a NatWest current account open so you can answer the 'time with bank' question as 6 years, not 2 years (in 2 years time when you go for your mortgage).

I know your absolutely right to make most of one's finances. Even after all the outgoings, I have over £1000 left which I leave in current account and move some of it in e-savings earning 1% and some in ISA earning 2% hoping to improve interal score. Maybe I should move all my savings to better products.

I was undecided whether to switch or not when I opened this thread but I think now I am not very keen to switch. I normally have enough left in Natwest current plus each month to transfer to Halifax rewards to earn free £5 :j

James129

chambta wrote: »

I wouldn't read anything into the pre-approved offers. Natwest's also have internal scores that you don't get to see, the same as any bank.

What makes you think Halifax value internal behaviour more than Natwest? You've puzzled me there.

The only messages or popups I recieve on my online banking are to open fixed rate bonds or talk to financial advisors.

About pre-approved offers, I have seen countless people being offered guaranteed creditcards on MSE from Barclays and Halifax.

pinkdalek wrote: »

Just out of interest do you pay over £1000 in your Nat West account? If so what do they give you back?

You would get £5 a month reward with Halifax, plus an additional 0.2% interest on your savings. They also offer discounted rates to their current account customers on their mortgages.

If you were going to switch contact the branch see if they have any incentive for you to switch current accounts. Often you can get a cash incentive just for letting them switch your direct debits.

Might be worth looking at what the other banks can offer you too for switching current accounts.

I think Natwest current plus account does accure some interest but not much. I pay just over £2000 each month and don't get anything back really.

I have already opened Halifax rewards account but havn't switched direct debits, standing orders or anything yet.

I'll keep tranfering atleast £1000 to rewards account and see what happens after 2 years.

YorkshireBoy

James129 wrote: »

I'll keep tranfering atleast £1000 to rewards account and see what happens after 2 years.

I don't think that'll generate any credit card offers from them, ie simply by transferring £1,000 in and £1,005 back out again.

I've had 5 guaranteed credit cards from Halifax (3 online and 2 in branch) over the last 4-5 years, but one of my Halifax Reward current accounts (I have 4 ) is used as my main bills account. I would imagine it's these bills, the odd ATM withdrawal, and (most importantly) my salary via monthly BACS Direct Credit, that generates the offers...not simply cycling money through it.

Maybe one of the HBoS employees on here can confirm?

Blue_Max

I opened a Halifax Reward Current Account couple of years back. Got a free incentive (£50 I thiink) and they pay me £5 bonus every month for paying in a minimum of £1000. So probs so far.

But I did not have to switch.
For switching FirstDirect and Santander offer attractive incentives.

So why not open an account with Halifax without switching?
Then switch from Natwest to either FirstDirect or Santander?

zppp

James129 wrote: »

The only messages or popups I recieve on my online banking are to open fixed rate bonds or talk to financial advisors.

About pre-approved offers, I have seen countless people being offered guaranteed creditcards on MSE from Barclays and Halifax.

OP, you are missing the point of what chambta as said already. Natwest do have pre-approved products including cards, mortgages etc, it is just that they don't put them on online banking - they are only visible to staff. Perhaps it would be better that when you want a product and you want to check whether it is likely to go through is to call them up.