Changing bank accounts and mortgage

rev_henry

It is now time for the almost annual rearrangement of our bank accounts, of which there are many. I intend to switch all of them. However, we intend to apply for a mortgage in the next few months. Is it worth waiting until then? I understand it looks better on an application and credit file to have held the same bank account for a while. The main switch would still be with the RBS group, does that make a difference?

badger09

rev_henry wrote: »

It is now time for the almost annual rearrangement of our bank accounts, of which there are many. I intend to switch all of them. However, we intend to apply for a mortgage in the next few months. Is it worth waiting until then? I understand it looks better on an application and credit file to have held the same bank account for a while. The main switch would still be with the RBS group, does that make a difference?

I would definitely hang onto your oldest account until the mortgage funds are received. Stability will be one of the factors taken into consideration by all lenders.

As to switching the others, as it depends how many are involved, as each application for a new account will generate a credit search.

Whatever you decide, I wouldn't ask for any overdrafts ion the new accounts.

gingercordial

I would leave all of it until after the mortgage is given and even until the house purchase is completed - mortgage lenders often run a final credit check just before releasing the funds.

Current account applications run a credit search because even if you don't apply for an authorised overdraft they still give you the opportunity to run up an unauthorised overdraft so can be considered potential means of getting into debt - unlike a savings account which cannot go overdrawn. Therefore lots of applications may be considered in a negative light depending on the lender's criteria.

I intend to pause my current account tarting well before I make any mortgage applications, when the time comes. I don't think it's worth the risk, and I can start again afterwards.

rev_henry

Thanks. I think on that basis I'll work within the confines of the accounts we already have. Besides, after we've bought the savings situation will be completely different as we'll have, erm, spent all of said savings!