We are 2 months from our 6 year anniversary having completed our IVA last year. All Credit files are primed and ready to have glowing reports in the next few months. We hope to apply for a standard Mortgage at some point this year. A very long time coming.
Anyways I am quite annoyed, let me explain. At the very start of our IVA we were made to apply for completely new bank account, once we had applied it came with a £500 Overdraft we did not cancel it nor did we use it but it was just there. That continued for the 5 years of the IVA no problems at all. Once the IVA completed last year I have to say I have used the overdraft very strictly always paid off each month.
We are now 2 months from being completely IVA free and the bank have contacted me to say they have decided to reduce the Overdraft to £50. Whilst some consider this a good thing I see this as a negative and I would very much like it to remain at £500, the bank can not confirm why this has been done and will only appeal with a proper credit check. I have been honest and explained the reason why that is not a good idea.
The reason I am on here is because of the ridiculously poor Customer Service I would like to move bank accounts. I have another Current account with another bank which has been used a couple of times over the years but obviously this is not my Main account. I would like to move my salary and Direct Debits from my 1st bank bank account to my spare account.
As I am not applying for a bank account how could this affect my Credit file when applying for a mortgage. Will it be a negative if my salary is suddenly being paid into another account?
I wouldn't see it as a problem .. these days people change accounts for everything all the time to get better service or better offers.
I imagine the reason they have reduced the overdraft facitlity is because it wasn't being used. My bank has recently done the same to me and cited that reason.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It's not something that would be a huge issue to be honest where a Mortgage is concerned but feel free to contact us if you wish to discuss your situation in more detail.
Regards
Ryan Radford
IVA Mortgage Expert
Zebra Money Centre
IVA Mortgage advice needed? Looking at Right to Buy and completed IVA still on credit files ?
Never had an overdraft with either bank I use and don't want one. Do agree with the others that it should not cause a problem. Shouldn't make any difference if you swap salary etc to your other account.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks I shall move forward with confidence. Thanks Ryan we were planning on speaking to you or your team about a mortgage, we’ll be in touch any day now.
