If you have a tracker mortgage and current account with the same lender, don't switch

[Brendan Burgess]

I came across a case recently where a customer with a Bank of Ireland tracker mortgage and a Bank of Ireland current account, switched their current account to save fees.

They are now looking to trade up and avail of the Bank of Ireland tracker mover product.

My gut feeling is that they would be better off, had they stayed with Bank of Ireland. I doubt if there is any formal or official advantage, but I suspect that the credit department making the decision to grant the increased mortgage would be more comfortable if they could look directly at his financial history, which is good.

 

[LDFerguson]

I think this advice is good as long as you have a squeaky clean history on your current account for a long time. But it cuts both ways - if you have some minor transgressions in the past - late payment of a Direct Debit etc., then it can be to your advantage to have your current account with a different bank.

There's a thread on KBC's incentive to switch your mortgage and current account to them here.