Excluding the applicant(s), how many people are you financially responsible for

dkts

hi, this is a great forum (for the random questions I have in my head), however couldn't find thoughts on the above.

if taking out a bank loan/mortgage what answer should be given to the above question for the following scenarios? before I carry on, my thoughts were that it depended on whether you were financially linked or not:

1) Living with parents, but you work full time (are the parents still financially responsible for you? or vice versa?)
2) Living with a partner who you're married to but they work and don't need your financial help e.g. no financial link
3) Living with a partner who you're married to with children, responsibilities are split, partner takes care of  of the children financially in their name, but you take care of everything else; bills, loans, shopping, holidays, basically all other expenses under your name etc. - I suppose this complicates things when taking into account birth registration with both parents named on the certificates?
4) same scenario as 2 and 3 but not married.

I realise this question may not be quite clear as to what i'm trying to achieve here but genuinely just a thought and wondered as I was reading posts on borrowing money. Also, I suppose this would be looking for the right answers and not opinions on whether its wrong/right to say zero or x amount of people you are/are not financially responsible for when you are/aren't, as that would be lying. Just want to know the technicalities of the above situations in the eyes of the bank/money loaner.

[Deleted User]

In your scenarios above, you would be considered responsible for the children. Marriage wouldn't impact it.

lisyloo

1) No. 
2) If you have absolutely no financial link then no. But if you (for example) share a mortgage and have joint liability for that then I'd say you are financially responsible for each other. Also if you plan to take care of them if sick then they are a financial liability. If you have full insurance then no.
3) I would say children and partner because you have joint liabilities (for the children).
4) Same as 3. Marriage doesn't affect it, it's whether you have any joint liabilities e.g. children, house, each other (if sick) etc.

I would see the potential to financially care for someone when sick as a financial liability.

If in doubt you should ask the company concerned and not guess,

dkts

One more thought I did have is, how would banks know if you are financially responsible for someone(s) apart from you saying that you are? not trying to say this something I would not state if I am, but intrigued to know how the answer is verified by them.

[Deleted User]

In most cases they wouldn't, as applications are largely taken non trust (people wouldn't like the interest rates offered if banks had to manually check everything). 

But some things would be evident from bank statements on the occasions where they are requested and most importantly, it provides them with a defence against mis-selling when customers can no longer afford or want to repay the loan.

lisyloo

dkts said:

One more thought I did have is, how would banks know if you are financially responsible for someone(s) apart from you saying that you are? not trying to say this something I would not state if I am, but intrigued to know how the answer is verified by them.

Formal financial links are on your credit report.
most of the time they won’t check but your declaration could come up in a complaint or if there is an issue.

Sandtree

1) is unclear... they may be providing you financial support or they may be retired and you are financially responsible for them

2) Personally I dont count mutually responsibility so no financial dependents

3 & 4) Would argue the kids are your financial responsibility shared with your partner. Marriage is irrelevant

lisyloo

Sandtree said:

1) is unclear... they may be providing you financial support or they may be retired and you are financially responsible for them

2) Personally I dont count mutually responsibility so no financial dependents

3 & 4) Would argue the kids are your financial responsibility shared with your partner. Marriage is irrelevant

2) this isn’t entirely clear, but in most cases if a partner fell sick and couldn’t work then they would be a financial liability. The state e.g. for benefits purposes would certainly count you as a financial unit and expect you to look after each other.
some people may have good insurance but it rarely 100% (legally payouts are limited to less than 100%).

apart from looking after a partner, if you share a house then you may find you are jointly liable for the bills. So for example if the partner walked out you’d be left with 100% of the bills,  ot 50%.

I’d agree it’s not clear, but personally I see a liability there is most case Where people are jointly liable for bills.