Current Account Switch Before Mortgage Application -- Bad Idea?

abc.xyz

I'm hoping to get on the housing ladder in the new year, but I'm tempted by First Direct's current account switch offer. I've been with my current bank for 14 years. I'm also tempted to open a Virgin current account so I can take advantage of their 6.5% regular saver.

Is this a bad idea as I'll be applying for a mortgage in the next 6 months?

Thanks

flaneurs_lobster

Opening those new current accounts will need hard searches on your credit record, generally thought to be not a good idea in the 6 months before applying for a major chunk of credit.

Those deals will make you a couple of hundred quid, and there will be similar deals available after any mortgage has been approved.

Personally I wouldn't do anything that might jeopardise getting the mortgage I need at the best rates available. 

amnblog

Cannot see these action in the next few weeks being a problem with a 2026 mortgage application

Exodi

FWIW, the 7% First Direct Regular Saver has been going for coming up 3 years now, it's not one of these fly-by-night offers that is gone by the times you've finished reading the terms.

Both of them require accompanying current accounts though and I believe from memory they both performed hard searches.

Principality pays 7.5% on £200 for 6 months and doesn't require a current account, I believe? Nationwide also has a decent one, who do you bank with now?

That said, like @amnblog I doubt a hard search now for a current account would have any impact on a credit application in 6 months.

abc.xyz

Exodi said:

FWIW, the 7% First Direct Regular Saver has been going for coming up 3 years now, it's not one of these fly-by-night offers that is gone by the times you've finished reading the terms.

Both of them require accompanying current accounts though and I believe from memory they both performed hard searches.

Principality pays 7.5% on £200 for 6 months and doesn't require a current account, I believe? Nationwide also has a decent one, who do you bank with now?

That said, like @amnblog I doubt a hard search now for a current account would have any impact on a credit application in 6 months.

I hadn't seen the Principality one, I'll take a look. I'm currently with HSBC. MSE says

Who can get the bonus?
- You can't have ever had ANY product with First Direct
- You can't have opened an HSBC current account since Jan 2018

So I think I qualify as I opened the HSBC account in 2011?