Declaring dependents on application

kingstreet

Just had an interesting note from our compliance dept;-

Nationwide have identified cases where dependants are not being declared on applications in order to improve the affordability.

Nationwide are reviewing cases at application, completion and even post completion to check this area carefully.

We have been made aware that advisers have had their Nationwide agencies removed when non disclosure of dependants has been uncovered.

Please ensure that you declare all relevant information to Lenders when submitting applications

so make sure the information supplied is completely accurate.

Brodiebobs

I never quite understand why dependants make such an impact any way. We were going to try move, supplied all income details to bank, they said we could borrow £160,000, at last minute the advisor said sorry didn't ask do you have kids, yeah two, and that figure went down to £95,000. I'd like to know where they get their costings from!

kingstreet

ING takes a massive chunk out of your borrowing power for a couple of kids. I didn't think Nationwide was that bad, to be honest. It just shows the things lenders are looking at which are being used to bend the system...

Brodiebobs

TBH it wasnt a nationwide branch, but its good to know if we were to look again.

I personally know a couple who didnt declare their 3 children to get a mortgage, this was a few years ago when the checks probably werent as strong, but how they got away with is is a mystery as they claimed tax credits and paid nursery fees so it would in theory have been all over their statements!

trulysaintly

Brodiebobs wrote: »

TBH it wasnt a nationwide branch, but its good to know if we were to look again.

I personally know a couple who didnt declare their 3 children to get a mortgage, this was a few years ago when the checks probably werent as strong, but how they got away with is is a mystery as they claimed tax credits and paid nursery fees so it would in theory have been all over their statements!

A few years ago, the amount of dependents wouldn't make as much difference - it does now.

Some lenders like Woolwich have had calculations brought in on the potential cost per child, per month.

This seems to be a fairer way - about £150 per month.

Brodiebobs

£150 per child per month!!!??

Thing is it doesnt take into account your habits, like minded people like me on here will spend waaaay less than that, but its "computer says no" and thats it!!

Wakey2008

This is utter utter nonsense.

How much they spend on things will come out in the fact find so the number of dependants is not relevent.

Do Nationwide just want to know how many dependants or are they asking for names and dates of birth etc?

I know of a lender that asks for their details (names, DOB etc) which is just to use against them for protection sales. These days people don't want to give their kids details out and who can blame them?

Senior_Paper_Monitor

.... or to check the longivity of child based benefits which are often included in income ??

I can't agree (from an adviser's point of view) from many reasons (including suitable protection advice) that collecting numbers, DOBs and even names (if only for politeness - I think our clients prefer us to refer to 'Jessie' rather than 'the child') is incorrect - major fluctuations in income/expenditure come with various stages of the families age progression - all part of finacial planning/advice.

Names (for the lender) probably not necessary, but the rest for building up a financial profile is in my view perfectly reasonable. Whether the broadbrush calculations of '2 dependents' is valid/accurate is another argument, but the more information they collect in this area the more hope of sensible formulas being applied (if not now but sometime in the future).