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Moving banks

Posted: Fri Jan 12, 2018 1:56 pm
by allaboutme77
Hi all,

We are looking for advice please.

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?

Looking forward to your advice

Re: Moving banks

Posted: Fri Jan 12, 2018 2:16 pm
by Foggy
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.

Re: Moving banks

Posted: Fri Jan 12, 2018 2:32 pm
by Ryan
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

Re: Moving banks

Posted: Fri Jan 12, 2018 2:40 pm
by kallis3
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.

Re: Moving banks

Posted: Fri Jan 12, 2018 2:44 pm
by allaboutme77
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.

Re: Moving banks

Posted: Fri Jan 12, 2018 3:00 pm
by Ryan
Look forward to hearing from you.

Have a good weekend and the same to everyone else viewing this.

Regards