Applying for Financial products with no income, but of "independent means"

Sea_Shell

OH is due to give up work ...taking early retirement/career break (depending on how much DIY needs doing!!). He'll therefore have no wages, but our joint household income (inc interest/dividends) will still be about £18K p.a.

We have saved a good 'nest egg' , which if i've done the maths right, we hopefully won't have to touch, as above should cover most, if not all, outgoings, even with continuing to contribute something to our pensions.

My question is....will his lack of a wage mean he won't be able to apply for the best banking products (accounts/cc's etc), regardless of our overall financial situation.

Cheers :beer:

nearlyretired2004

Will he be drawing a pension?

Sea_Shell

No not yet....he's still the right side of 50. maybe i should have put the EARLY in caps!!!

saintalan

Might be an idea to earn a few £s cashback and check your Experian credit rating, at least you would know from which point you are starting.

Sea_Shell

Have checked Equifax in the last couple of months for us both (through TCB) and all clean and green!

We did Experian a couple of years ago and that was OK too.

It's in my diary to do the Experian one again via TCB soon.

Archi_Bald

Income the banks are asking about doesn't have to come from employment or pension. You could pay him an income once he stopped working, or all his income could come from investments and savings etc etc

Sea_Shell

Archi_Bald wrote: »

Income the banks are asking about doesn't have to come from employment or pension. You could pay him an income once he stopped working, or all his income could come from investments and savings etc etc

I realise that 'income' as far as funding accounts doesn't have to be wages....but i thought declared income on a new application, would have to be NEW funds to the household. Surely i can't just say i pay OH ££££ per month?? Or can I?

What's the going rate for a househusband.....shall i be mean and put him on Minimum Wage!!;)

unimaginative_user_name

I have opened three high interest current accounts recently putting homemaker as my occupation and declaring my savings interest as my income (which averages out at £500 a month). All three accounts were opened with no hassle at all. I ticked the box saying that I didn't want an overdraft facility so that might have helped a bit. I have also never had problems obtaining a mobile phone or credit card although I haven't applied for any which specifically ask for a higher income than I actually have (eg American Express Platinum).

Sea_Shell

Thanks for that UUN. OH's half of the annual interest etc is only about £3k, but hopefully that'll still be OK.

I've got his list of jobs ready to go!!!!

unimaginative_user_name

Sea_Shell wrote: »

Thanks for that UUN. OH's half of the annual interest etc is only about £3k, but hopefully that'll still be OK.

I've got his list of jobs ready to go!!!!

If you trust him (!) it might be worth transferring all or most your joint savings to his name to make full use of his personal allowance as the interest can be paid gross.

Good luck with the list of jobs!!

Sea_Shell

Got it covered. Most of the cash is already in ISA's, so not that much of it taxed. I'm already not a taxpayer, as part-time and below the threshold. (salary+savings allowance)

OH has earned enough this year to make him a tax payer, but he'll be due a refund once he finishes.

As for next tax year, with the new rules....£1k of Non-ISA interest Gross should be fine.