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Renting with bad credit history
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# 1
carriel
Old 10-10-2006, 12:32 PM
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Default Renting with bad credit history

Can I ask for peoples experiences on this one or any information you can offer?

We're about to put our house on the market & have decided we would prefer to rent for 2 years while we decide whether the area we choose is defintaly for us.

We will have a large amount of equity from the sale of our house which will be put in a ISA or similar once we sell to use as a deposit when we decide we want to buy again.

We do have debts & have defaulted on a couple, we are in a DMP & are paying them as much as we can at the moment, but obviously as soon as the house is sold, they will all be paid off.

I've been looking at a few houses this morning & they all ask for credit searches, references etc, now our credit search will not be good


Do you think it will be a problem for us to rent? We've never missed a mortgage payment in 10 years, so hopefully this will be seen as a good thing! We are also willing to offer 6 months or even a years worth of rent in advance to secure the right house.

Any thoughts?


Last edited by Former MSE Natasha; 10-10-2006 at 6:24 PM.
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# 2
westernpromise
Old 10-10-2006, 1:56 PM
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Quote:
Originally Posted by carriel
We are also willing to offer 6 months or even a years worth of rent in advance to secure the right house.

Any thoughts?
I wouldn't do that. What if the landlord stops paying the mortgage? He gets repossessed, you get evicted and you'd have to get your money back off him.
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# 3
whambamboo
Old 10-10-2006, 1:59 PM
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Quote:
Originally Posted by carriel
Can I ask for peoples experiences on this one or any information you can offer?

We're about to put our house on the market & have decided we would prefer to rent for 2 years while we decide whether the area we choose is defintaly for us.

We will have a large amount of equity from the sale of our house which will be put in a ISA or similar once we sell to use as a deposit when we decide we want to buy again.

We do have debts & have defaulted on a couple, we are in a DMP & are paying them as much as we can at the moment, but obviously as soon as the house is sold, they will all be paid off.

I've been looking at a few houses this morning & they all ask for credit searches, references etc, now our credit search will not be good

Do you think it will be a problem for us to rent? We've never missed a mortgage payment in 10 years, so hopefully this will be seen as a good thing! We are also willing to offer 6 months or even a years worth of rent in advance to secure the right house.

Any thoughts?

Lots of agents don't bother credit checking. You could always go with a private landlord.
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# 4
kirstles77
Old 10-10-2006, 2:12 PM
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Me and my partner both have defaults on our credit history, but we rent through a private landlady. She didn't ask for a credit check - only character references.
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# 5
silvercar
Old 10-10-2006, 2:31 PM
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for a landlord the problem will be that they won't be able to rent insurance without credit checking you.

I would consider you if you paid 6 months rent up front, otherwise not. Sorry.
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# 6
carriel
Old 10-10-2006, 2:57 PM
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Thank you for the feedback & its good to hear a landlords point of view.

I know we arent a risk, but I can understand a landlord thinking twice about renting to someone with a bad credit history, I know if it were me, it would cause me concern.

I'm glad that the offer of advance rent would be something a landlord would consider, makes me feel a lot happier about it all. I've since spoken to an agent too & she said that alot of people receive bad credit searches, & that an offer of advance rent really helps.
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# 7
silvercar
Old 10-10-2006, 3:11 PM
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There are a lot of people with debt problems in this country.

There are a lot of people not in a position to own property.

These two groups have an overlap. If no landlord would consider anyone with a bad credit rating there would be a lot of homeless people around. On the other hand landlords need to protect themselves or they wouldn't be in business.

Being prepared to pay a large deposit and/ or rental up front will show a landlord good intent.

I give my tenant a copy of the buildings insurance. This means they know that, not only the building is insured, but that the mortgage company is aware the property is rented out. (As mortgage companies require notification of the building insurance.) This means the tenant is secure in knowing that, if there was a mortgage problem, the mortgage company would be aware there was a tenant to consider.
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# 8
clutton
Old 10-10-2006, 5:09 PM
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i would be impressed with the honesty you have shown here, and if you came to me with your mortgage payment records, and bank statements for several months, and the offer of rent in advance, i would offer you a tenancy - after checking out with your current employers. good luck with your search.
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# 9
real1314
Old 10-10-2006, 9:14 PM
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I'd agree with the 2 previous posts, an honest declaration, an offer of double deposit and say rent payable 3 months in advance?
Definitely a good idea to take your mortgage statements to show your ability to pay / budget.
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# 10
James Robertson
Old 11-10-2006, 1:17 PM
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Default carriel

Why are you renting?

If you have equity in your house, get a mortgage!!
Mortgage Brokers will fall over themselves to lend to you if you have a good deposit (25% or more)


When you come up against greedy landlords, they want to cover themselves, credit checks, references, large deposits. Why bother???
Just buy, you are paying someones mortgage anyway

James
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# 11
whambamboo
Old 11-10-2006, 1:55 PM
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Oh dear.


Quote:
Originally Posted by James Robertson
Why are you renting?

If you have equity in your house, get a mortgage!!
Why?

Renting is often cheaper, is more flexible, and it doesn't cost thousands of pounds in lost money like buying and selling after 2 years would do.

And when prices have tripled in 10 years, would you say it's impossible for them to fall, or that they will triple again?

Quote:
Just buy, you are paying someones mortgage anyway

If you have 200,000 invested and you earn 10,000/year from it, but then use it buy a house, how much money do you earn from your house?

The answer is zero

So if you are paying less than 10,000 a year in rent, then you are better off by not buying, aren't you?

Owning a property is not free, because you either pay interest on a mortgage (which costs money, just as rent does), or you lose interest/income on sinking the money into the house.
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# 12
gemsaysdontdodebtkids
Old 12-07-2007, 11:51 AM
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I want to resurrect this really old thread because I'm about to default on one of my accounts and am freaking out about it. I kepe thinking I'll never be able to rent anywhere.
Debt
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# 13
fa1ryw1ngs
Old 15-05-2008, 7:30 PM
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thank you for this thread i am living in a council house with the neighbours from hell and really need to get out the only way i can do it is to rent we have not got the deposit or credit rating for a mortgage.
Fingers crossed
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# 14
jimc
Old 16-05-2008, 10:07 AM
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Quote:
Originally Posted by gemsaysdontdodebtkids View Post
I'm about to default on one of my accounts and am freaking out about it. I kepe thinking I'll never be able to rent anywhere.
The Credit Check carried out in many cases is at the level of major defaults such as CCJs and Bankruptcies. I am told that in many cases the referring agency simply matches the detected CCJs (Undischarged and Discharged) against what the tenant declared on the application form. The biggest No-No is if the tenant appears to be hiding a CCJ (even if it has been discharged).

If the tenant is totally honest about the CCJs and their current financial position (The check also shows the extent of the CCJ so the landlord can see if you are in for hundreds or thousands) then they are far more likely to welcome the honesty. Having said that, it is not uncommon for Letting Agents to be instructed "no CCJs" so you will be limiting your possibilities. Private landlords tend to be more forgiving when dealing direct and person-to-person but BE HONEST AND UPFRONT is the key.
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# 15
Icey77
Old 16-05-2008, 11:58 AM
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The couple that rent my flat are semi-retired and have moved from the west-midlands to be closer to family. Because they are retired my LA told them and me that they would be difficult to credit check. As a result they offered to pay the full rental fees upfront and have continued to do so each time the AST is renewed.

Just becuase you'll be hard to credit check or have a poor result does not close all the doors - find a good LA and be truthful with them and they could be able to help - afterall they want to get their commission for finding a tenant for their landlord.

Good luck
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# 16
hm2be
Old 16-05-2008, 12:22 PM
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We dont have a bad credit history but we were not credit checked by the LA. Although I think that has something to do with ours not being an AST tenancy- easier to get rid of us if they needed to.
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# 17
LilMur23
Old 15-07-2008, 5:53 PM
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Default Renting with really bad credit!

Can anyone help?

We have hit really bad times financially and we are losing our home. We now have to rent. Should we tell the letting agency everything, although the house has not been reposessed as yet?

Any advice would be really appreciated...we have young children and we are worried sick that we are going to end up homeless.

Lilmur
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# 18
bemybaby01384
Old 24-07-2008, 6:51 PM
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Hi we have a very bad credit history with a discharged Bankruptcies and have on our credit file about 7 ccjs we can not rent anyone with ccj ect will not be able to rent renting is for the people who have a good credit scoor or have 6 months rental up front.and dont forget everytime you apply to rent a house the secrch wil show on your credit file and the make it a impossible task. dont bother renting
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# 19
jimc
Old 25-07-2008, 10:23 AM
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Quote:
Originally Posted by bemybaby01384 View Post
dont forget everytime you apply to rent a house the secrch wil show on your credit file and the make it a impossible task.
Whilst this is true of full CREDIT searches (Searches carried out specifically to justify a requested loan or a credit facility), a 'Tenant Referencing' search does not necessarily register as a Credit Search on the records. I know this is true for searches using CallCredit if the organisation carrying out the search ticks the 'tenant referencing' box, but don't know whether this applies to the other 2 credit referencing agencies.
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# 20
DonutUK
Old 31-01-2009, 6:08 PM
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Sorry to resurrect an old thread but....

Just about to get my first CCJ. I am in a DMP and all but one of my creditors have accepted the payment offer.
The other has taken me to court!

Also in the process of separating from the missus, and would probably end up looking to rent.

How bad is it going to be for me with a recent CCJ and a fair few defaults, although they are all a few years old e.g. i haven't run up new debts for the last 5 yrs...just paying off what i owe.
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