Opening a new current account before mortgage app

applewill

Hi all,

First post here so appreciate any help.

I am looking to switch current accounts to Santander to take advantage of their monthly rewards as currently mine gives nothing, but am wondering if this has a detrimental effect on a credit rating from a lenders point of view as I'm also looking to apply for a Santander mortgage in a couple of months time. Currently I hold no Santander accounts.

I think this seems to not be too much of a problem as long as not too many credit applications are made (I only plan on making one current account application and have made no new credit applications for over 2 years) although correct me if I'm wrong. Another query is would it be viewed negatively that my current account has only been open for a couple of months? Or do I keep my old current account open and then close after the mortgage offer has come through?

Or should I just leave any changing of current accounts till I have the mortgage offer to avoid any issues entirely? It would mean losing out on the 0.10% benefit Santander account holders currently have on fixed rates but I'm fine with that if it means less chance of rejection based on this issue.

Thank you for any help!

snowscreamer

I changed bank accounts from Lloyds TSB to Nationwide using the new Current Account Change guarantee scheme (change account in 7 days, old account and old DDs transferred automatically) a month before signing on the dotted line for my mortgage and this was fine. Just make sure that before the old account is closed (so in the 7 day changeover) you get copies of 12 months' worth of statements showing the closing balance the same as the opening balance on your new account, as the mortgage underwriters will want continuous bank statements.
As long as you're not getting a new overdraft or any new credit it shouldn't affect your credit rating.