Moving bank, close credit card etc before application

richy4

I want to move bank accounts (switch) to take advantage of the offers that are always mentioned on this site. I also want to pay off and close down a 0% interest credit card (0% period ends in September this year) all before a mortgage application.

I'm aware that switching bank accounts involves a credit check, and also paying off and then closing my CC can affect overall credit checks, especially before a big application like a mortgage.

Has anyone any experience of this? Shall I just wait to switch accounts till after my mortgage application. In regards to CC, I need to pay this off regardless before applying, however shall I delay closing the account overall till after application also? How much impact does closing a CC cause on credit?

ashp_2

richy4 wrote: »

I want to move bank accounts (switch) to take advantage of the offers that are always mentioned on this site. I also want to pay off and close down a 0% interest credit card (0% period ends in September this year) all before a mortgage application.

I'm aware that switching bank accounts involves a credit check, and also paying off and then closing my CC can affect overall credit checks, especially before a big application like a mortgage.

Has anyone any experience of this? Shall I just wait to switch accounts till after my mortgage application. In regards to CC, I need to pay this off regardless before applying, however shall I delay closing the account overall till after application also? How much impact does closing a CC cause on credit?

When are you planning to make a mortgage application? I think ideally it's best to have everything in order 6 months before a mortgage application.

richy4

Bank switch can be delayed till whenever, not urgent.

CC is 0% till September, balance around £3300. Funds readily available to pay off as/when potential lender asks

ashp_2

richy4 wrote: »

Bank switch can be delayed till whenever, not urgent.

CC is 0% till September, balance around £3300. Funds readily available to pay off as/when potential lender asks

I had £3900 on my 0% card (Maxed) for my mortgage application. It went through fine they didn't even ask me to pay it off.

Best to have no credit applications or new/closed accounts in the months running up to the mortgage applications if possible.

Royster82

I was told it's best to have your credit cards closed down if you are not using them before application, not essential but recommended due to your applying for a mortgage of a certain amount and the underwriters will see that you have credit available.

It could be quite a large amount mine was 10.5k what's to say if your nearly maxing your mortgage out you'd not go on a spending spree on the cards, I did not use my cards that much, only ever used about 100 pounds and paid off in full every month that I used them, I had three CC so no need to have two of them so I closed them down.

I think you should defo not move banks tho until you've moved in to your new house.