is it wise switching current account to current mortgage lender 27 September 2022 at 10:42AM edited 27 September 2022 at 10:42AM in Budgeting & bank accounts 5 replies 183 views

MR_Ktm

Hello,
   I have been getting email offers to switch my current account to my current mortgage lender , which has benefit of one time cash back , and withdrawal prizes per month.
I dont have any problem with my current bank account , but i wonder if switching it to the current mortgage lender , that can closely monitor and tap my financial activity's in my current account  and make decision on mortgage based on that ...may be i am thinking a bit too much ...but just thought of checking with money saving experts
would really appreciate to hear from the members:)

Thankyou !!

WillPS

If you pay your mortgage reliably then you've nothing to fear. If you fall in to arrears and you have an account in credit with the same bank, in some cases the banks can use that credit balance without asking you. It's a rare occurrance though.

If you're happy with your current Current Account provider then I personally wouldn't switch that account, I'd open a donor account and switch that to receive the Switching Bonus (I presume that's what you mean by "one time cash back", although I've got to say I've no idea what a "withdrawal prize" is).

Rob5342

I don't see a problem with it, if you want to switch mortgage then you'd have to give the new lender a few months worth of bank statements anyway. Switching bank account is a fairly trivial thing these days, you can switch to get a bonus and  have several open at the same time. I'm on my 7th main current account and have three other current accounts open too.

MR_Ktm

Thank you for the answer ...yup one time cash back is switching bonus and they have withdrawal prize every month for person with current account and the mortgage with them ...with prize value to pay off mortgages !
anyways thanks for the answer ..really appreciated !!

[Deleted User]

Rob5342 said:

I don't see a problem with it, if you want to switch mortgage then you'd have to give the new lender a few months worth of bank statements anyway. Switching bank account is a fairly trivial thing these days, you can switch to get a bonus and  have several open at the same time. I'm on my 7th main current account and have three other current accounts open too.

It depends entirely on the lender and your credit profile; I got my mortgage with a payslip and my driving licence.

tifo

WillPS said:

If you fall in to arrears and you have an account in credit with the same bank, in some cases the banks can use that credit balance without asking you. It's a rare occurrance though.

It's not 'some' banks, all banks can do it. And it's not rare, it happens a lot. Known as Right of Set Off.

My mortgage provider keeps offering to open a current account but i've never done it. Same with business account, I don't use the personal account with them.