How easy is it to rent??

dodecanese · 1 March 2008 at 4:27PM

Hi again,
After a lot of thought over the past few days, I have made the decision (sort of, Im in total turmoil) to give up the house. Its in negative equity and the mortgage and secured loan are very high. I was initially concerned the OR would be a bit funny about this and possibly refuse to allow the high payments. Ive come to the decision that the situation isnt workable. I can afford/pay it now- but it takes everything and the slightest rise in council tax, rates or fuel could easily tip it over the edge.
I feel guilty going down the repo route as I currently CAN maintain the mortgage, could the OR look upon this in a bad light?? Im seriously worried that if I keep the house, I will continue to struggle- I accept that BR isnt going to leave me with loads of surplus cash, but the last thing I want is to be in the same situation 2 years down the line. I never intend having credit again, but if it gets to the stage where I cant afford the mortgage, and houseprices dont increase- Im looking at a significant shortfall- I suppose, yes, I could try to negotiate with the creditor and maybe do a DMP, but I dont want to be in a position where Im going BR again.
How hard is it to get a rental property? I currently have a couple of defaults but no CCJs. Ive found a couple of nice houses and both landlords have accepted my cat. Im going to view them next Tuesday- so far Ive not mentioned my BR plans. I know I need to but Im scared Im going to get turned down flat. I read somewhere about some sort of clause in the rental agencies insurance that wont allow them to accept BRs as it dosnt cover the loss of rent if the BR dosnt pay it. And at the end of 6 months tenancy agreement, would I have the same problem all over again?
I dont really have 6 months rent up front. I could stop paying the mortgage- Id then have it in about 3 months but by the time I then hand the keys in to the mortgage company Ill already be BR and my credit rating will be shot.
Feel like Im in a really dodgy situation and will end up out on the street.
I would be really grateful for anyones help and advice as to how they dealt with the rental situation.

Lizzibuff · 1 March 2008 at 4:42PM

I dont know enough about your mortgage and br to be able to comment, i'm sure someone else will be along to help out with that.

As far as renting is concerned - have you thought about social housing? If your property is repossessed and you can show that you are technically homeless, your local council have a legal duty to house you. You will be put on a waiting list and in many cases have to 'bid' for suitable property - in the meantime tho you will be in emergency accomodation - this could be a flat or even a b&b.

Initially it sounds pretty grim but being homeless would place you towards the top of any waiting lists and once you got your social property - its pretty much yours for as long as you want it. Assuming you dont do anything untoward to breach your tenancy agreement.

Try chatting to your local council or housing association to see how it works in your area - you have to make it clear tho that the repossession would be because you couldnt afford the mortgage and that therefore the banks choice not yours. if you willing leave the property - you cannot claim homelessness because you left of your own choice. To claim homelessness it must be something that is imposed upon you - ie repossession, domestic violence, termination of contract etc etc.

Good luck and all the best.

debt_doctor · 1 March 2008 at 8:42PM

Hi ,

In order to be permanently re housed under homeless legislation you need to pass all 5 tests of homelessness. I have not seen any mention of children or vulnerbility. Without this you would not be re housed by the council under the legislation nor would they have a duty to provide you with interim accomodation.

DD

dodecanese · 1 March 2008 at 9:34PM

Hi and thanks for the replies. I did actually call my local housing association and, as Debt Doctor mentions, I dont fall into their "urgent" category. ive got no kids and am in full time, perm employment and am "choosing" to become homeless by surrendering the house. They did say I could put my name on the list but that Im going to be right at the bottom of it, which is fair enough really. So, im going to have to go down the private rental route.
Both places Ive looked at are with letting agents. Im going to call them on Monday and tell them Im going BR - that way at least I know where I stand with it.
Part of me still thinks I should keep the house on and just take a chance with the OR, I suppose its a gamble whichever way.
thanks again for the replies.

maxmycardagain · 1 March 2008 at 9:54PM

the OR wont want a house with negative equity, and your mortgage lender wont repo a house if your not in arrears.

but take advice first before making any decisions

geordie_joe · 1 March 2008 at 9:56PM

Do you have to tell the Letting Agent you are going BR?

My letting agent didn't ask if I was BR, but they did do credit check. Well they charged me for one, no guarantee they actually did one.

If you are not BR when you sign the tennancy there is no need to tell them what you intend to do.

The main thing they will be worried about is can you pay the rent. You will be paying a month in advance.

If you give the OR a copy of your tenancy agreement and show you are not in arrears with your rent they will not contact the letting agency or your landlord.

fermi · 1 March 2008 at 10:02PM

geordie_joe wrote: »

If you give the OR a copy of your tenancy agreement and show you are not in arrears with your rent they will not contact the letting agency or your landlord.

A lot of examiners/OR's will agree to that, but unfortunately not all.

dodecanese · 1 March 2008 at 10:30PM

Thanks for the replies. Ive paid the mortgage (HSBC) this month as too late to stop the direct debit, and I dithering a bit over the whole thing too. I have cancelled the sec loan DD and havnt paid it this month- tho it was due on 28 Feb so not massively overdue- if I call and arrange to pay it, they will probably be ok.
My credit file at the minute is probably ok- couple of defaults but no CCJs. Would I be better in just coming clean and saying Im going BR shortly??
If I posponed my BR and didnt pay mort/sec loan to give the landlord 6 mnths rent upfront- could the OR see this as an assett and get it back??
Thanks again

geordie_joe · 1 March 2008 at 10:44PM

dodecanese wrote: »

Would I be better in just coming clean and saying Im going BR shortly??

I have only had experience with one letting agent, but with them coming clean would be all the excuse they need to demand six months rent in advance.

dodecanese wrote: »

If I posponed my BR and didnt pay mort/sec loan to give the landlord 6 mnths rent upfront- could the OR see this as an assett and get it back??
Thanks again

I wouldn't think so, if you show that you had to pay it in order to get accommodation.

Also, if they got it back it could mean you become homeless.

debt_doctor · 1 March 2008 at 10:52PM

Nothing wrong with not paying mort / sec loan prior to BR and using that money for housing needs. There are no BR offences there.

I agree with Max that it can take a long time to get to the eviction stage ( another thread). In my own case it was a good 9 months before actual eviction date, by which time I was long gone !

At work I have never heard of anyone being evicted within 6 months of their first missed payment.

Hope that helps.

DD

geordie_joe · 2 March 2008 at 12:33AM

debt_doctor wrote: »

Hi ,

In order to be permanently re housed under homeless legislation you need to pass all 5 tests of homelessness.

I think it all depends on where you live.

Ten years ago I was living with my son and DIL on an army base. He got posted to Germany and I was told, in writing, that I had to leave the base too. I dropped heavy hints that I would not leave the house and it would take them months to evict me.

It was made very clear to me that on the day my son and DIL left the base I would have no right to live in their quarters. Therefore I would be an unaurthorised intruder, and would be removed by men with guns and dogs. As an unaurthorised intruder I would be treated as a potential terrorist and dealt with accordingly.

I took all the paperwork to the council, which included letters saying I would be removed from the base at gunpoint and arrested if I remained in the house. This would be no ordinary eviction!

They said "Tough, you are a single man and all we will give you is the phone number of a homeless hostel".

I rented from a private landlord. but last July I found out he intended to sell the block of flats I lived in. He was going to "do up" each flat in turn and sell them. My tenancy agreement would run out on 22 December and it would not be renewed.

A couple of weeks later a neighbour to council and been given a flat within a week. And that she knew 3 other people who had done the same and been given flats within a week.

So I rang the council, they said they would post out the forms, but I went to collect them as they are only 200M down the road. I handed the forms back to the council on a Thursday morning and the following Tuesday they wrote me a letter , which I got the next day, offering me a house.

It turned out to be in a fantastic place, £176 per month cheaper than the flat I was renting, and it was only built in 2002.

For years I have been told you can't get a council house unless you are single, female, pregnant who has been thrown out by her parents, or an immigrant. Single white males have no chance of getting council accommodation.

Then within a week of filling in the forms I get a little palace, in the perfect spot and £176 per month cheaper.

I also get a guarantee than they will provide me with a home for life, provided that I don't damage it so that it it uninhabitable, annoy the neighbours so much they get a court order to evict me or stop paying the rent when the council can prove I can afford to pay it.

I am well chuffed.

I guess it just depends on where you live!

Sorry for the long post, but I love my little council house, even if it is run by a housing association.

How easy is it to rent??

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