Opening Online savings account

Cupcake85

I have been given some money from
Inheritance and it's in my normal bank account.

Two weeks ago I got my mortgage offer I'm just waiting for my new build to be finished, due end August.

My question is if I open an online savings account with my current bank will it effect my mortgage, do they credit check etc?

AnotherJoe

Why do you think having a savings account might be an issue ???? You've got extra money they won't look unfavourably on that. The most likely issue, which may or may not arise, they may question the source of the money that arrived in your bank account, eg the inheritance amd you'll have to provide some documentation to show that.

Cupcake85

It's not having the savings account might be an issue its the opening on a savings account

I know you shouldn't apply for credit between exchange and completion but not sure if the same applied for a savings account.

Solicitor has seen proof of source for savings so no issue there

AnotherJoe

As long as you don't have an overdraft on an account you aren't applying for credit.

Jhoney_2

Actually, if you open a CURRENT account, it is still classified as credit even when you have no overdraft. The ability to have it is still there. I thought the same as AnotherJoe and was advised as much on this very forum in the credit and ratings forum!

If the savings account is with your existing bank, they are likely to only need to do a soft search as they have already confirmed your ID etc for your present bank account - which I presume is a current account.

You could always ask the bank, but when I opened a current account and then a savings account a week later (with several banks over the same period), my CRA recorded the savings ones as not affecting my 'file/score' and the ones that were for bank a/cs were all HARD SEARCHES.

I don't think lenders see the soft searches.

HTH

AnotherJoe

Well you live and learn jhoney I certainly didn't know that! Seems bizarre. So you could open a current account with no overdraft, put five thousand pounds in it and it would be classed as credit?
The lunatics have taken over the asylum.

Jhoney_2

AnotherJoe wrote: »

Well you live and learn jhoney I certainly didn't know that! Seems bizarre. So you could open a current account with no overdraft, put five thousand pounds in it and it would be classed as credit?
The lunatics have taken over the asylum.

It would still say you have not taken out any credit but it is classified as a Credit account. I will see if I can paste something in later.

Here it is:-

XXXXX CURRENT ACCOUNT

• XXXXX BUILDING SOCIETY
• XXXXX CURRENT ACCOUNT
• XXXXXXXXXXXXXXX
• XXXXXXXXXXXXXXXX (CURRENT ACCOUNTS)

Your total available credit is the combined limit of all your revolving credit accounts


You have no available credit

They were hard searches. It sort of makes sense, once you are an inmate:)