Will switching energy supplier affect remortgage application?

user1168934

My fixed rate is ending in about 3 months time and I have already asked my mortgage broker to submit a remortgage application. He should be subitting it any day now. The question is, I want to switch my gas and electricity supplier.
Should I wait till the remortgage application is approved? Will switching energy supplier (and thus a credit check) have any affect on my remortgage application?

user1168934

any ideas folks?

[Deleted User]

It’ll be 1 credit search. The effect of that depends on how many other credit searches you’ve had, how recent they are and your credit profile generally (any missed payments etc?). Income also helps - high income/easy affordability and the more they (system and/or humans) will overlook any potential negatives.

It’s very unlikely in isolation that a change of Utilities would cause you to fail credit scoring - but credit scoring is like Jenga... you can add things to it and push the boundaries - eventually, it’ll be a no (could be 1 search, 3 searches, high utilisation, 1 missed payment 2 years ago, nobody knows)

Saving from re-mortgage is likely to far outweigh utilities, so taking a very cautious approach you could simply wait until completion of the mortgage. On the other hand, risk is low and you could switch now and get the best of both worlds.

If one lender declines you, you can always go to another - unless you’re already scrapping around and only have a few possible options (like me on Shared Ownership)

Can’t say it won’t have an effect, as likely it will - but it’ll be minimal and unless you’re already struggling to get a mortgage, I can’t see it causing you any real problems.

Rodders53

Not all Utilities do a credit search, allegedly. Google is your ally in finding them.

TBF if such a sensible thing, as switching energy providers to get best prices is penalised it will be because of other affordability checks on you!

System

No it won't. It might alter the mickey mouse credit score the reference agencies generate which no lender uses but it'll make no difference.

Rich2808

I think if you explain this to the lender that shouldn't be an issue. An electricity or gas contract is hardly the same as a credit card or personal loan search.

Unless of course they want you not to heat the property they have just lent you money to buy and also don't want you to save money on that expense which of course means you have more spare money to pay the mortgage each month!

user1168934

Thanks very much for the replies folks.