How best to prepare for mortgage application, especially post bank tarting?

[Deleted User]

These past few months, I've taken advantage of several bank switching deals, which has added complexity to my financials, and obviously lowered my average account age. I hear the hard searches go off the credit report after a year, so it shouldn't be a problem from that point of view, but I'm wondering about average age of accounts, and if I should simplify things before trying to get a mortgage.

My goal is to get a new job and to get a new place, and I'd like to do so in around a year or so.

I've got several current accounts, several regular savers, and several credit cards which are paid off in full every month.

I don't know if I should close a couple of accounts, or if it's better to leave them open. And same for credit cards - good to have them open for a bigger credit limit? I have never missed any payments, had any defaults, etc.

I've got 8 months left on a 0% finance loan for £350 a month, so I don't think I can really get a mortgage before then as it's a big hit on my affordability. I also have 18 months left on a £75 a month 0% finance, which doesn't seem to have a big impact on my affordability on the calculator I've used. I have the money in my accounts so I could pay these off any time if I needed.

What should I start doing now to prepare myself for a mortgage application?

Nebulous2

I don't think they'll care about any of that. Pay regularly, reduce debt, stay on the electoral roll. Changing job could be an issue, speak to a broker about that one - don't do it mid-application, either before or after should be okay.


Debt even at 0% will be taken into consideration for affordability. You might be asked to pay down some of that depending how hard you are pushing your multiple of earnings.

fewcloudy

[Deleted User] wrote:

I've got several current accounts, several regular savers, and several credit cards which are paid off in full every month.

I've seen threads on here before where an issue has been people moving money around between accounts to 'qualify' for a number of other accounts that pay more interest. I don't know if that is what you are doing? Great for money saving, but maybe not so great when applying for a mortgage...

timefortea

I've spent a few years bank tarting and just applied for a mortgage last month. The Post Office said I'd failed the credit score, Nationwide accepted me. I have no idea why else I'd have failed a credit check as I have no debt (except a student loan), pay my credit cards off every month, etc. So I think the tarting did it. It wasn't a big problem for me, I've still got a good rate with a high street lender, but if you're thinking about it now maybe avoid any further switching.

[Deleted User]

Yeah, I don't plan to open any more accounts to switch. I move around sums of money each month to satisfy the requirements, and also have direct debits from 3 accounts. My regular savers all mature at various points within the next year, and I plan to just keep the cash in my 123 account for the time being. I will pare down the accounts as and when I'm finished with them.

I won't be applying for a mortgage before getting a new job as I can't afford it on my current income anyway.

The £75 a month payment has had very little impact on my affordability from the calculators I've used. The £350 one obviously has a substantial impact, and I'll probably not be ready to buy before that one finishes. If I am, I can pay it off anyway.