Nationwide don't count dividends as income

mattbee_3

I've just wasted about a week of phone calls trying to straighten out what seems to be a recent policy change at Nationwide.

Basically I applied for a loan online, stated my income as described, they accepted my application and sent me the forms asking for proof. Then I asked them what proof they would need for company dividends -- I am 50% shareholder in my company and most of my income is in planned quarterly dividends, not wages.

However recently it seems Nationwide have changed their policy on accepting dividends as income, and it seems I had inadvertently inflated my "provable" income by about 75% -- company shareholders beware I guess. They also don't seem to understand the structure of a limited company, and couldn't decide whether I was employed or self-employed. My accountant said his clients have lots of problems with Nationwide in this area; they don't have the training to understand the difference between a self-employed trader and a shareholder in a limited company.

I called Northern Rock, got an <1% increase in rate on the same loan, so not too much harm done but I could have done without the waste of time & the extra credit search on my file. NR say that they accept dividends as income and only need my company accounts to check them over; I asked several times, but I guess I'll only find out a couple of days when they look over my "proof"!