Retail banking changing attitudes towards customers?

Myself and my girlfriend have a lump sum we wish to lock away for 12/18 months which will be used for a deposit on a home. I initially thought we should go with the bank which has the best return but now I'm thinking should we stay with the bank we think we have the best hope of securing a loan from?

I say this because we have had a meeting with a prominent non state owned bank about this lump sum deposit account and also setting up a saving account. This bank we positive when we mentioned a mortgage, they said it looked good for us. They also said they would pop in the word 'mortgage' for the saving account to help us seem like serious savers when we go looking for a mortgage. Is it in our best interests to keep our money with this bank to seem like secure customers?

I know banks in the past didn't care who you saved with as long as you had the money, but i think times have changed and that retail banks may look more favorably on loyal 'safe' customers who keep there business and money there. Also, the difference between the returns isn't great is it? A couple of hundred euro maybe? Anyway, would be interested to hear what others think.

In my experience it still doesn't make any difference who you keep your savings with. Once you can show that you have accumulated the savings this will stand to you for a mortgage application.

Doubt it will benefit one way or the other, all the talk by the bank employee was to get your deposit account now!

scruff said:

Myself and my girlfriend have a lump sum we wish to lock away for 12/18 months which will be used for a deposit on a home. .

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If you are going to be in the market for buying a house in the near future, you should not tie up your money at all. Put it in a demand account.

What happens if, in 6 months' time, a lender brings out a new product offering special mortgage rates to people who have a deposit history with them?

Stay flexible. Maybe split your money over two banks.

And when you do buy a house, make sure to sign a formal agreement with your girlfriend about what you are doing. Askaboutmoney is full of case studies of people who bought a house together and have since fallen out. I don't think one of them had an agreement in place which would have reduced all the hassle.

Brendan