Loan and Fraud

nxdmsandkaskdjaqd

Hi.  I have had a conservatory built with the terms of 36 months interest free loan. I have completed the application form 3 times now and it has been rejected.  Each time the conservatory company asks me to increase the "annual income" on the form.  I am retired and the only source of "annual income" that I have is my state pension.  The application form specifically asked for "annual income".  Any other money that I need comes from savings and pensions (which i understand do not count as "annual income").

Just a little concerned about being asked to keep increasing my annual income to get the loan through.  Am I committing Fraud by lying on the form about the "annual Income" that I have?

MorningcoffeeIV

Yes.             

enthusiasticsaver

You can include private pensions as annual income too. 

Mr.Generous

I guess you could add to your income a figure for interest from savings too.

nxdmsandkaskdjaqd

So it's OK for me to add any sum I like which comes from savings and a private SIPP.  Just to confirm?

Edi81

Just don’t be pressured to inflate your income to more than it actually is. That would be fraud. 

tacpot12

nxdmsandkaskdjaqd said:

So it's OK for me to add any sum I like which comes from savings and a private SIPP.  Just to confirm?

Yes, you can add any regular payments from a private SIPP, regardless of the periodicity of such payments - monthly, quarterly, half-yearly or annually are all fine if they are regular payments. You can also consider increasing the amount of such regular payments until you reach a level of income that results in the loan being approved. You only have to keep the payments at this level until the loan is repaid, assuming that you have enough in your SIPP to withstand that level of withdrawals.

You can also include interest from savings, but I would not recommend including more than the interest.

But I have to ask (as this is MSE) why are you having a conservatory built if you can't afford to pay for it? 

nxdmsandkaskdjaqd

tacpot12 said:

nxdmsandkaskdjaqd said:

So it's OK for me to add any sum I like which comes from savings and a private SIPP.  Just to confirm?

Yes, you can add any regular payments from a private SIPP, regardless of the periodicity of such payments - monthly, quarterly, half-yearly or annually are all fine if they are regular payments. You can also consider increasing the amount of such regular payments until you reach a level of income that results in the loan being approved. You only have to keep the payments at this level until the loan is repaid, assuming that you have enough in your SIPP to withstand that level of withdrawals.

You can also include interest from savings, but I would not recommend including more than the interest.

But I have to ask (as this is MSE) why are you having a conservatory built if you can't afford to pay for it? 

You say Regular Payments!.  I don't take regular payments from the SIPP, I only take money out when the market price is right, does this make a difference.

 I can afford to pay for it, it's just that 0% was offered so had to take it.  To be honest I hate debt, and would rather pay it off in full, but that's not good financial sense.

MalMonroe

Hi, you said "I have had a conservatory built with the terms of 36 months interest free loan. I have completed the application form 3 times now and it has been rejected."

So the conservatory company has built the conservatory already but you still don't have the loan? 

You go on to say, " I can afford to pay for it, it's just that 0% was offered so had to take it.  To be honest I hate debt, and would rather pay it off in full, but that's not good financial sense."

It doesn't appear that a loan is forthcoming whether you lie on the form or not. (But don't lie, it's not the conservatory company who will get into bother if it all goes pear-shaped, that'd be you.) In principle, 0% repayment terms sound good but your application has been rejected three times and it seems that you are flogging the proverbial horse. 

You may recognise this quote from the forum : "Remember MSE's stance on loans: 'borrow as little as possible, repay as quickly as possible'."

You say you can afford to pay it off in full, so that would seem to be your best option. 

Just my own thoughts and opinion, of course but there is a solution to your problem and if I were you, I'd just pay up rather than cause myself any more upset. I'd also want to check my credit reports to see if the continued rejections have affected them. 

I hope you get it sorted soon and can enjoy relaxing in your conservatory.

Edi81

A bit late now but you do realise you have paid for the 0% finance through an inflated price for the conservatory. 

Nebulous2

Changing your income on repeated applications carries a risk of being flagged and causing problems for you down the line. Applications are monitored for consistency of details. It is also possible that the lender asks for proof - 3 months payslips being a common request.