I've just got a mortgage with Nationwide and my current account is with First Direct. My mortgage payments will be coming out of the FD account and I don't have any other Nationwide account.

With First Direct you need to hold a current account to obtain their other products, so without one I suppose technically you wouldn't be entitled to hold a mortgage with them. I'm not sure if any other bank works like this.

Check the conditions of your Mortgage.

When I worked for Co-op we had deals where the arrangement fee would be waived or halved if they had a co-op bank account that had used the switching service or had been opened for at least 6 months and had their wages and bills coming from it. Im not sure what if anything would happen if the account was closed afterwards, I was told they were checked but im not sure how true that is.

No you don't but Nationwide gives current account holders £250 when they take out a mortgage - so it may be worth having one if your lender offers such incentives.

HSBC also offers better rates to its current account holders.

It will entirely depend on the terms of the mortgage product. With mine I have to hold a current account and fund it with a certain amount each month, or I don't qualify for the special rate on the mortgage anymore.

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