Multiple bank accounts

slopemaster

I have a total of 8 bank accounts in order to maximise interest, and I circulate the same 1000 pounds through all of them each month in order to meet funding requirements. Common enough on here - but I suddenly wondered whether, to the unenlightened, this could look extremely dodgy when I apply for a mortgage.

Does anyone know how it's likely to be viewed?

I also have 7 credit cards, though I never carry a balance on any of them.

amnblog

It would be interesting to hear how much you generate with this system.

AnotherJoe

Funnily enough the other day someone posted doing this as a "trick" (their word) in order to fool the banks into thinking they were more credit worthy than they are.:D

I'd have thought there must be enough people doing this stuff by now it can no longer be an issue, if it ever was.

It must be annoying for any back end analytics programs looking for fraud though, this kind of circulation of money is used in things like money laundering and vat fraud and you'd think a few years back the only people doing this would have had some dodgy purpose, all of a sudden there must be a mass of consumers swamping the data and making the fraud more difficult to find.

slopemaster

4% on £5000 in Lloyds current a/c
3% on £3000 in Tesco current a/c
HSBC current a/c gives access to regular saver @6% on £300/month
5% on 2 x £2000 in TSB
£150 cash for switching to Yorkshire Bank
£5/month from Halifax
etc...

Can't remember the others, but that's £708pa there for not much effort

slopemaster

AnotherJoe wrote: »

Funnily enough the other day someone posted doing this as a "trick" (their word) in order to fool the banks into thinking they were more credit worthy than they are.:D

Yes, I suddenly thought it might look like I was trying to somehow make 1000 look like 8000 income!

AnotherJoe wrote: »

I'd have thought there must be enough people doing this stuff by now it can no longer be an issue, if it ever was.

Hopefully, yes.

Beano123

17 Accounts (7 Current, 9 Savings and one credit card) and no problems getting the mortgage. Various current accounts had money going through to meet deposit requirements,

The only real problem was because my deposit was spread over various accounts was providing 6 months statements (or more) of all the accounts to prove that the deposit had been built up over time. I also had to provide a list of what money was in what account to build up the deposit.

I suspect that it depends how thoroughly the mortgage company want to analyse your application. 6 Months of statements is a lot of information to sort through and as long as nothing obvious flags up (gambling/payday loans et al) you should be okay.

One thing to consider is that if you have a high credit limit on your credit cards it might reduce the amount the mortgage company would be willing to lend you. Emphasis on the word might there. A lot of things might affect your application but then again, might not.

I hope your over thinking things and your application goes okay.

Of course I'm just a random bloke on the internet who has no idea what analysis mortgage companies will do!

If you have serious concerns about the issue I'd go and ask a mortgage broker about it and see what they say - they'll know far more than me.

slopemaster

Beano123 wrote: »

17 Accounts (7 Current, 9 Savings and one credit card) and no problems getting the mortgage. Various current accounts had money going through to meet deposit requirements,

I hope your over thinking things and your application goes okay.

Wow!
Thanks very much

amnblog

slopemaster wrote: »

4% on £5000 in Lloyds current a/c
3% on £3000 in Tesco current a/c
HSBC current a/c gives access to regular saver @6% on £300/month
5% on 2 x £2000 in TSB
£150 cash for switching to Yorkshire Bank
£5/month from Halifax
etc...

Can't remember the others, but that's £708pa there for not much effort

That's a shame cos I would have to charge you an extra grand for dealing with all those bank statements!