Do I have to hold a current account with my mortgage provider?

Apli81

I hold my current account and mortgage with First Direct, who have told me that if I switch my current account it will invalidate my mortgage. Is this common practice or does it differ between banks?

hw1409

I've just got a mortgage with Nationwide and my current account is with First Direct. My mortgage payments will be coming out of the FD account and I don't have any other Nationwide account.

With First Direct you need to hold a current account to obtain their other products, so without one I suppose technically you wouldn't be entitled to hold a mortgage with them. I'm not sure if any other bank works like this.

Thrugelmir

If the holding of a current account is a condition of the mortgage product you currently have. Then yes is the answer to your question. .

amnblog

No you don't.


It makes no difference in most cases and hardly any difference in the others.

Apli81

Thanks for your responses. I'll have to follow-up and look into the terms of my mortgage.

ACG

Check the conditions of your Mortgage.
When I worked for Co-op we had deals where the arrangement fee would be waived or halved if they had a co-op bank account that had used the switching service or had been opened for at least 6 months and had their wages and bills coming from it. Im not sure what if anything would happen if the account was closed afterwards, I was told they were checked but im not sure how true that is.

Rich2808

No you don't but Nationwide gives current account holders £250 when they take out a mortgage - so it may be worth having one if your lender offers such incentives.

HSBC also offers better rates to its current account holders.

scottishblondie

It will entirely depend on the terms of the mortgage product. With mine I have to hold a current account and fund it with a certain amount each month, or I don't qualify for the special rate on the mortgage anymore.