How useful or not is an in-house current account?

hoc

To what degree does having a current account with a mortgage provider facilitate the mortgage application? For example, I have a current account with First Direct that never goes into overdraft but also does not have anything other than a trivial balance. My main account is with Santander which has a very high balance (always over 20,000). What difference would these make when applying for a mortgage with First Direct or Santander? Does a low balance account (even if never overdrawn) do more harm then good? If it makes no difference I will close my First Direct account as I no longer need it.

Thrugelmir

If there's little to no activity through an account. Then a lender has no indication as to how you manage your personal financial affairs. Therefore adds no value to an application for credit.

hoc

Thrugelmir wrote: »

If there's little to no activity through an account. Then a lender has no indication as to how you manage your personal financial affairs. Therefore adds no value to an application for credit.

Does it cause harm, can it be seen as a negative to say have a current account that is dormant with a 100 quid balance?

AnotherJoe

hoc wrote: »

Does it cause harm, can it be seen as a negative to say have a current account that is dormant with a 100 quid balance?

The only negative might be if had a massive overdraft limit associated with it. Some lenders might regards that as potential borrowing you could make in the same way lots of credit cards give a potential for lots of borrowing even if you hardly use them and pay it all off every month.

But in the real world, no.

specious

Some lenders have better rates for people who are existing customers. I'm looking to apply to Nationwide. Doing a soft search they ask if you are an existing customer.

Thrugelmir

hoc wrote: »

Does it cause harm, can it be seen as a negative to say have a current account that is dormant with a 100 quid balance?

Has no bearing on an application to borrow for a mortgage.

hoc

AnotherJoe wrote: »

The only negative might be if had a massive overdraft limit associated with it. Some lenders might regards that as potential borrowing you could make in the same way lots of credit cards give a potential for lots of borrowing even if you hardly use them and pay it all off every month.

But in the real world, no.

The most overdraft I have on an account is the standard 500, have never asked for it and never used it. I suppose they add up but all my accounts combined won't even have half the limit as one of my credit cards. My total credit is less than half my earnings and I only use about half that at most so I'm hardly maxed out. But I do have a few of these extra current accounts I opened in the last few years to get switching bonus and access to regular savers but with returns constantly being cut I have greatly lost interest, pun intended. Keeping track and managing is more hassle than its worth but I'm at two minds whether to empty out and leave running or fully close.

specious wrote: »

Some lenders have better rates for people who are existing customers. I'm looking to apply to Nationwide. Doing a soft search they ask if you are an existing customer.

Precisely a consideration of mine. I have not looked at detail, but whenever I run quick comparisons Santander and First Direct stand out and they are similar.

Thrugelmir wrote: »

Has no bearing on an application to borrow for a mortgage.

Is this an absolute fact? So, as mentioned above, it can reduce the final rate or fees but does not increase the probability of being approved?

hoc

Bump for unanswered questions.