Loyalty to Barclays?

Symcom

Hi,

I've had an account with Barclays > 10 years and until a couple of years ago it was my main account. With the fact I will be looking to apply for a mortgage within the next 12 - 18 months, is there a downside to switching this dormant account to benefit from a switching bonus elsewhere?
I don't know if having held an account with the same provider for a long time will benefit me more in the long run than £100 might in the short term? I've held my other account for a couple of years now.

Thanks in advance.

PeacefulWaters

One of the questions on your mortgage application will be "time with bank".

The longer the better.

Symcom

So you think 10 years as opposed to 2 years would be 'worth more' than £100?

YorkshireBoy

So you think 10 years as opposed to 2 years would be 'worth more' than £100?

It's not a question of being "worth more". When you approach a mortgage lender it's best to do so with plenty of 'stability', ie long time with bank/at address/with employer.

So, why don't you open an account elsewhere and then switch that for your £100?

And then use the new one to switch for the next £100...and so on.

PeacefulWaters

Symcom wrote: »

So you think 10 years as opposed to 2 years would be 'worth more' than £100?

I didn't say that.

But somewhere along the way it could be. It might be the difference between one mortgage lender and another. Or a lost valuation fee on a declined application. Or no mortgage whatsoever. It might make no obvious difference at all.

I'm all for extracting value. Just understand the risks. The mortgage is the big one for you and will swallow £100 within a few days. Switching offers will probably be around long after you've moved in.

pmduk

Just remember nobody can answer your question with certainty. The weight banks give to each answer on an application varies daily, today's answer may be wrong tomorrow. I suggest you follow PeacefulWaters' advice above.

System

Time with bank will only make a difference on an already very borderline application.

LTV, Salary and the like are all much more important factors.