Reposession Looming - Can I still Rent?

GazNicki

Hello all,

Repossession is looming for us at the minute, and the stress levels are at an all time high. Basically, can I still rent if my house is repossessed?

I want to move towns, back to where I used to live as this will bring me closer to work and allow me to reduce my overheads by selling the car and cycling to work. I know I can meet repayments on a Rented Property, but a few things stand in my way. Furthermore, I do NOT want a council house. I have lived in an ex-council house for 3 years and it has been hell. I want to live in a quiet street and have found the perfect place. It isn't posh or above my means, but is quiet and fit for bringing up my two kids with my wife.

The things in my way are:

The wife is on Incapacity Benefits
Both our Credit Ratings are awful
The house is being repossessed (please bear in mind that this will only reflect on the wife's credit history, not mine)
The houses are through major/large estate agents who require credit checks.

In my favour is:

My parents will be guarantors

There have been threats via the phone from the Lender, but no papers have been served as of yet, but this will happen sooner rather than later.

Can you please advise if we are still able to rent, or are we doomed. I don't want to be homeless, and living in a council estate it making the wife's illness even worse, so we are spiralling into a worse state. I just want to work hard for my family and live a quiet and peaceful well behaved life.

Please Help.

nervousmother

When you go to the agents advise them you have a poor credit rating but have a guarantor, they should be fine.

Fire_Fox

What steps are you taking to prevent this repossession and/ or sort out any other debts? How can you afford rent when you are behind on repayments?

This isn't intended to 'have a go' they are genuine questions. You may find it helpful to repost this on the Debt-Free Wannabe board, which is full of very friendly and very knowledgeable types that can help you untangle the many issues here.

iscrimger

A letting agency will have questions about how you will pay for rent. Remember the initial setup cost for a rental is a Deposit, 1st Month Rent + Fee (which varies hugely).

I am just about to move because my rented flat is being repossessed. It's costing my flatmate and I over £2k to move next door!

I have heard of some agencies also asking for more money when you've got a poorer credit record - in some cases it's the first 6 months rent!!

It should be said when a letting agent carries out credit checks it's more to check your identification rather than your actual credit score - it's a means of checking you are who you say you are.

An alternative would be council housing/housing association rather than a private rental.

GazNicki

Thanks for the replies.

The reason that we are being re-possessed is rather complicated. We are behind on the mortgage repayments but have been making payments to the arrears as well as the monthly repayments, but the house is in the name of my new Wife and her Ex-Boyfriend. He has a debt of £10,000 assigned to the house as he stopped paying for a car with Welcome Car Finance, and the mortgage is £65,000 for the house. In total, this takes the house cost to £75,000 with a potential MAXIMUM value of £75,000 - Thus leaving no equity.

We are currently going through the process of an IVA. From this, we have been advised that maintaining mortgage repayments isn't exactly enough to ensure we don't get repossessed as Welcome can now chase for repossession in order to get their debt paid too. This will happen as they have started to chase him for the money again.

Also, the neighbours here have been damaging cars and property, as we live in a council estate in an ex-council house. The entire situation is one big stressful mess, and we want out of the house, out of the area, and out of the town.

If we sell the house, which could take months if not years, there is no promise we will make the £75k mark and be left skint, plus have to fork out the fees for the solicitors/estate agents etc plus the ex-boyfriend is playing hardball too. By moving and renting to another town I will be closer to work and be able to reduce my overheads by selling the car and cycling/walking to work (better for my expanding waistline too).

So, since the house is in the name of my wife (her maiden name) and her ex and not mine, we want a fresh start. The recession makes the house worth peanuts, and the credit rating is making us stress out. But my parents will be my guarantors and now that a few peeps on here have said it shouldn't be too much of a problem helps. Just the fear of a 6-months up front rent is enough to scare us now, but we will have to cross these bridges as they appear.

We know we can't get a mortgage together as we would need a 100% mortgage now (12 months ago we would have had £15k of equity after all debts), so buying is not an option for a while. Renting is the only way, and council estate is not somewhere I want to go. No offence if anyone lives on one as I know that they are not all bad, but from past experiences, I would prefer to privately rent.

Thanks for the advice. Anymore is more than appreciated.

jojo9239

I would just be honest with any letting agent. If you have a guarentor that should be fine. When your applying to rent just be honest and state that your credit rating is pants but you are able to provide a guarentor. In this day and age it really doesnt surprise letting agents anymore when people have poor credit ratings.

Hope you find somewhere x

GazNicki

Thanks for the lovely replies. We hope we find somewhere too. I juts hope out luck changes soon as we have had nothing but bad luck so far