Moving Bank and Mortgage

[Leftfield]

Hi, I am looking at moving bank as my current bank charges ridiculous fees. However, I will also be looking at remortgaging my house early next year and have been told by some friends that if I switch banks I cannot apply to my new bank for a mortgage for 6 months.

Is this correct, I tried researching it online but couldn't find anything.

 

[ClubMan]

Might help to post some figures. E.g. remaining loan balance and term, property value, interest rate and type (variable, tracker, fixed), what sort of equity release (?) you would like to do and for what reason etc.

I presume by "fees" you mean interest rate?

 

[Brendan Burgess]

No, that is not correct.

The new mortgage provider will want to see your bank statements for a year or so, so you will just be providing them with statements from 2 different banks.

However, the potential savings in fees are not usually material. So you should probably keep your financial affairs simple and move banks after you switch mortgage. Things can go wrong in switching current accounts. And you don't want a mortgage payment missed because of some admin problem. That would certainly worry a prospective lender.

 

[Brendan Burgess]

I will also be looking at remortgaging my house early next year

What do you mean by remortgaging?

Do you mean switching to another lender?

If so, why don't you do it now?

If you have a fixed rate ending early next year, you can still switch now and the break fee will probably be immaterial or zero.

If it's because you changed jobs this year, then you will have to wait.