Multiple bank accounts and credit record cleansing

chequer71

Hi all,

Hoping for a bit of advice here re: bank accounts and their affect on both credit records and mortgage applications (banking with lender).

Originally posted the question in the Nationwide Save to Buy thread, but am yet to get a response there. Basically, I'm looking at opening Nationwide Save to Buy account with a view to moving my current ISA money into one of these accounts and then gradually adding my (and possibly my partner's) savings towards a deposit (we're planning for a mortgage app late 2013/early 2014).

To get the most attractive mortgage offers (free legal and standard valuation fees) it looks like it is best to open a Flex Account (current account) in tandem with a Save to Buy account. But I already have two current accounts (one with HSBC and one with Halifax), so does my partner. We have both switched between which we use most and which we choose to have our wages paid into. So...

a) Would it really be wise to open two new accounts at this stage (saver and current), leaving me with 4 in total?

b) Would it be better to stick with the accounts I've had for years in order to show 'stability'?

c) My partner holds one account with HSBC and 4 with Halifax (opened at various times to take advantage of introductory offers/savings rates). I've suggested she should get rid of three of those 4, is there any advice on which to cut (e.g. would the longest held account do us more favours than keeping the most used?)

We're not even certain we want a Nationwide mortgage, just that their offers currently rank amongst the most attractive to us (better than both Halifax and HSBC for starters). Would doing the above both damage our credit record and damage our potential relationship with, say, Halifax, if they turn out to be the more realistic/attractive option in 9-12 months time? How much of an aid is it really to have banked with the same potential lender?

Thanks!

chequer71

Sorry - I know it's a bit of a wordy post(!) but is anyone able to give me an idea?

How beneficial is it to apply for a mortgage with a lender that we already bank with?

How much emphasis is placed on 'stability' or the length of time an account is held with one bank?

How detrimental would it be to have 3 or 4 accounts on the go at the same time for purposes of a credit check?

Cheers for any advice!

Thrugelmir

chequer71 wrote: »

How beneficial is it to apply for a mortgage with a lender that we already bank with?

By bank with. If that covers salary credits etc, a definate plus. As there's a proven credit history.

With regards to other bank accounts. A spring clean would do harm if the accounts serve no useful purpose. As would negate any thoughts\ questions as to why so many.