Changing bank prior to mortgage application?

moatmeister

Not particularly happy with either of my current account providers at the moment. Credit file ok but Nationwide have pulled the plug on my o/d and cut my credit card limit to a paltry sum, and had to take Santander to the ombudsman over a major cockup who found in my favour!

Looking for a new mortgage deal in the foreseeable future. From a potential mortgage application point of view who should I be looking to move my banking to who may be more open to new lending? Opening a new bank account will involve credit searches. Would this have a derogatory effect on application?

gazfocus

I think one of the things mortgage lenders ask is how long you've had your bank account (and you may need to produce three months worth of bank statements) so I personally would hold off changing banks until you've got your new home.

moatmeister

Any one else like to comment??

Thrugelmir

Your current account track record restricts the lenders available to you.

moatmeister

Cheers. Could you elaborate further?

Wutang_2

moatmeister wrote: »

Cheers. Could you elaborate further?

I think you can work that one out yourself.

moatmeister

Apologies let me rephrase the question.

Looking for a new mortgage deal in the foreseeable future. From a potential mortgage application point of view who should I be looking to move my banking to who may be more open to new lending? Opening a new bank account will involve credit searches. Would this have a derogatory effect on application?

Not particularly happy with either of my current account providers at the moment. Credit file ok but Nationwide have pulled the plug on my o/d and cut my credit card limit to a paltry sum, and had to take Santander to the ombudsman over a major cockup who found in my favour!

Surely they wouldnt hold that against me?? Who should I save with to encourage future lending?

CLAPTON

what do your credit files say about you?

when will you be looking for a mortgage?

what's your income?

moatmeister

Salary £40k + overtime + exes

I consider credit file to be ok, others may not!

£1000 into £3000 o/d limit

Santander (ex A&L) Personal loan £8k/5years
approx £2300 owing, £186/month
12 months still to run

Santander CC
Limit £1500 balance £1066

BoS CC
Limit £4750 balance £3070 on 0% interest deal

NatWest CC
Limit £5600 balance £3198

Nationwide CC
Limit £500 balance £100

MBNA CC
Limit £5400 balance £4003 on 0% interest deal

Within last 12 months (and mostly previously) all payments on above on time and up to date

Mortgage payments all up to date and on time in last 18 months

1 x £10 payment for mobile broadband marked late over 6 months ago due to timing error but currently under dispute

Need to get in the best position ASAP to do further advance or possible complete remortgage to cover shortfall on endowment mortgage. Can reduce CC balances further but probably not clear them all off before application. If I can get them down to 50% utilisation would that make any or no difference?

The_J

Yet again, Thrugelmir is wrong. Ridiculous

Changing bank account won't make any difference at all bar a credit check against you.

moatmeister

Cheers. But just to clarify do you mean banking with a specific bank wont make any difference to whether or not that bank accepts you for lending?