Switching Current Accounts during Mortgage application

[Deleted User]

Hi!
So me and my husband are in the process of buying a house.
We've had our mortgage offer and are currently waiting to exchange contracts. It's all proving to be a lengthy process.
We currently have a joint bank account with Halifax which all our bills come out of and our wages go into. We both also have a personal bank account with Halifax which we barely use .
We then have a joint account already open with Monzo which we transfer our 'spending' money into so we don't touch the money needed for bills and we both spend whatever we want from there safe in the knowledge we're not going to have to worry about the bills being paid.
Now, looking at Monzos budgeting features, I would like to switch our joint account from Halifax to Monzo so all our direct debits come out of there instead. To do this I'd use the current account switch. The only thing I'm worried about is the fact that we are in the middle of a mortgage application. As both bank accounts are already existing, will this make a difference at all?
Thanks for your help

[Deleted User]

As Monzo is already open, it won't be a search on your credit file (indeed, it should already be reporting to TransUnion (CallCredit/Credit Karma etc.))

Assuming your proposed mortgage isn't with Halifax/Lloyds Banking Group? That's the only time I'd probably say to wait - unlikely to have an effect, but you don't want it affecting anything!

Otherwise, it'll be fine

[Deleted User]

Thanks Somerset! Our mortgage is with Barclays.
Just an additional question if you know the answer I would be massively grateful. 've got an open account with PayPal credit and they automatically increased my credit limit the other day by £1000 the only reason I know this is because Equifax sent me an email letting me know. Will this cause any issues do you know? No worries if you don't I'm just so frightened of anything falling through!!

[Deleted User]

That's a positive if anything - almost certainly wouldn't be a negative.

Although you now have more available credit, £1k on an existing account couldn't constitute the "material change" that would be needed to withdraw an offer, so I wouldn't worry about it.

Basically keep total debts the same or lower than at application and try not to open any new credit accounts (including utilities, furniture etc).

If you can, for ultimate peace of mind, only sign up for utilities, furniture etc. once you've actually got the keys.

In reality, a few new accounts such as Utilities shouldn't cause an issue - but it can do for borderline cases, and as you're anxious I just wouldn't do anything could cause an issue.

ACG

I would not switch anything until you complete.

What happens if the vendors pull out or there is an issue with the legals and you need to find a new property and send in new documents?