Switching current accounts —!how much impact on mortgage application?

nikongirl

Due to my woeful mismanagement of my finances in my mid-late 20's, my credit report includes one CCJ (satisfied but not currently marked as such, due to expire in Nov. 2018) and a default (being paid off, due to fall off report in April 2016). No credit cards, haven't touched my overdraft in 18 months, all other accounts up to date. I'm rapidly approaching 40 and mindful of the need to get a mortgage in the next 2 or 3 years before most lenders consider me over the hill.

I've had the same current account for 19 years, but really want to switch. I've been approved for a FirstDirect 1st account, but I don't want to do the full switch until I know it's not going to screw my credit report up even more. I've read that switching current accounts shouldn't have an impact on your credit report: "However if you are planning on applying for a mortgage soon, it may pay to be more cautious.
In this circumstance, showing a steady length of time with the same bank will usually work in your favour."

Any idea what they count as "applying for a mortgage soon" or "a steady length of time"?

Thanks :beer:

[Deleted User]

If you're completing a mortgage in the next month, I would leave it. Longer than that, I'd go for it.

Tixy

If you are not applying for a mortgage for more than 2 years then it definitely wouldn't put me off switching to a new current account.

I'd be more cautious if you were thinking of applying for a mortgage within say 6 months.