Renting and Credit checks

twinkle75

Hope someone has some good advice.... moral commentators please keep walking

I am currently in a debt management plan with CCCS. My husband is now a discharged bankrupt, since January of this year.

We are renting a property which we need to move out of due to a irritating neighbour and bad damp. We have been looking around for a while, and yesterday viewed a property that we really liked. We were waiting on the agents to call us back today which they have now done and I am really hacked off.

I take home 1,400 a month. The rent is 575. The agents say that they charge 110.00 admin fee for writing up the tenancy agreement PLUS 50.00 per adult credit fees. I wish for the tenancy to be in my name only as I am the breadwinner and my husband stays home with our son.

If we fail their checks then we will need my dad as a guarentor which is another 50.00 credit check. Therefore admin fees before any rent or deposit is taken could be between 200.00 and 250.00. I think this is bloody excessive, and reluctant to cough up. I know other agents take just the 110.00 for the main tenant and this includes all fees and checks. Still expensive in my view, but more manageable.

I cannot see why, if we go straight in with my dad as guarentor, we both have to be checked knowing that we will fail.

My moral side is telling me to tell them to stuff it, but we could be waiting ages for another place to come up with the right agent.

Anyone got any suggestions?

princessamy86

Have you asked them if you can just go straight in with a guarantor? They don't get paid until they let the flat after all, you could just say that you know how it will come back and don't want to waste anyone's time. They will still have to credit check your dad though. Will they allow you to take the tenancy just in your name? I thought you had to name everyone over the age of 18 on the tenancy agreement (that might be totally wrong, just my experience in the past). Unfortunately those fees are by no means the highest I've seen, I know it's a lot but it's pretty standard. Good Luck

Gingernutmeg

They generally want to credit check all of the adults who will be living in the house, regardless of who is the main breadwinner. I know in the past when we've suggested just one main tenant to save on fees, they've always insisted on credit checking us both and having us both on the tenancy agreement - I'd imagine there are legal reasons for this and of course two people are more likely to meet the rent multiples (I think you need to be earning 3x the yearly rent for the property to be considered 'affordable'). They'll also want to credit check your guarantor and I'd imagine that given your credit history you'll need one. Best thing to do is to be totally honest about any problems that they're likely to find, and find out before you hand any cash over whether your financial background is going to be a problem.

Tbh the only thing to do if you don't like the fees is to try for another property with another agency, who charge less. It sounds harsh but LAs can charge what they want and the only way to show you're not happy is to walk away. Given your situation, it might be better to look for a private landlord, rather than go through an agency.

twinkle75

I have phoned some of the other agencies and they don't charge anywhere near as much, so I have decided I will call them in the morning and say thanks but no thanks. The other agencies are also happy just to check me, so I can't see its an essential legal requirement. A shame because the house was really nice

barnaby-bear

twinkle75 wrote: »

Hope someone has some good advice.... moral commentators please keep walking

I am currently in a debt management plan with CCCS. My husband is now a discharged bankrupt, since January of this year.

We are renting a property which we need to move out of due to a irritating neighbour and bad damp. We have been looking around for a while, and yesterday viewed a property that we really liked. We were waiting on the agents to call us back today which they have now done and I am really hacked off.

I take home 1,400 a month. The rent is 575. The agents say that they charge 110.00 admin fee for writing up the tenancy agreement PLUS 50.00 per adult credit fees. I wish for the tenancy to be in my name only as I am the breadwinner and my husband stays home with our son.

If we fail their checks then we will need my dad as a guarentor which is another 50.00 credit check. Therefore admin fees before any rent or deposit is taken could be between 200.00 and 250.00. I think this is bloody excessive, and reluctant to cough up. I know other agents take just the 110.00 for the main tenant and this includes all fees and checks. Still expensive in my view, but more manageable.

I cannot see why, if we go straight in with my dad as guarentor, we both have to be checked knowing that we will fail.

My moral side is telling me to tell them to stuff it, but we could be waiting ages for another place to come up with the right agent.

Anyone got any suggestions?

Standard credit checks do affordability as 30xmonthly rent = 30x 575 = 17.25k should be less than annual salary if that gives you a clue (sounds like you'll be ok a 12x£1400 = £16.8k and that sounds net take home rather than gross); CCJs, bad credit history can be bad though - proof of paying your rent a good thing if you can. Fees sound pretty standard - a lot of credit checks higher, but varies on area (money for old rope).

barnaby-bear

Gingernutmeg wrote: »

They generally want to credit check all of the adults who will be living in the house, regardless of who is the main breadwinner. I know in the past when we've suggested just one main tenant to save on fees, they've always insisted on credit checking us both and having us both on the tenancy agreement - I'd imagine there are legal reasons for this and of course two people are more likely to meet the rent multiples (I think you need to be earning 3x the yearly rent for the property to be considered 'affordable'). They'll also want to credit check your guarantor and I'd imagine that given your credit history you'll need one. Best thing to do is to be totally honest about any problems that they're likely to find, and find out before you hand any cash over whether your financial background is going to be a problem.

Tbh the only thing to do if you don't like the fees is to try for another property with another agency, who charge less. It sounds harsh but LAs can charge what they want and the only way to show you're not happy is to walk away. Given your situation, it might be better to look for a private landlord, rather than go through an agency.

We got round this by saying Mrs. B-B was a housewife dependent.

[Deleted User]

go through a private landlord! u dont get all of this crap then...