Will opening a joint account affect mortgage?

First_Time_Saver

Hello,

I have a formal mortgage offer on a house, which I have exchanged contracts on and due to complete next week.

Will opening a joint account now affect our mortgage in any way?

Or is it best to wait until after completion and open a new current account jointly then?


Thanks.

kayfaz

Is the mortgage solely on your own name? And want to open a joint account with someone who isn't on the mortgage?

First_Time_Saver

kayfaz wrote: »

Is the mortgage solely on your own name? And want to open a joint account with someone who isn't on the mortgage?

The mortgage is in both our names.

Currently we have my current account setup for deducting the mortgage payments. However, we would like this to come from a joint account.

However - if this might in any way affect our mortgage, we will wait until after completion.

G_M

A joint account links your credit files.

But if (s)he is on the mortgage as well that link already exists and credit records taken into account.

So I don't see what harm it can do.

First_Time_Saver

G_M wrote: »

A joint account links your credit files.

But if (s)he is on the mortgage as well that link already exists and credit records taken into account.

So I don't see what harm it can do.

Thanks. Do you think it would be wise to wait until after completion to be on the safe side?

benjus

The mortgage lender may well do another credit check before completion. I guess it's conceivable that if you only just passed the credit-worthiness test for the mortgage a new account with credit facilities might tip the balance. But tbh I think it's very unlikely that it would cause any issues. There have been some stories of people buying lots of furniture etc on credit for their new home, then having the mortgage offer pulled because of it.

justcat

If you're happy to wait, I would if I were you.

As said above, it's unlikely to cause a problem but also probably not worth the risk!

kingstreet

No new applications for credit, and that includes a current account, between applying for a mortgage and completion.

The search may do no harm at all, but it certainly won't do any good and with the level of micro-management of mortgage applications these days, is it worth the risk?