Renting for the 1st time

longforthesun

OH and I have sold our house, we are planning on paying off all our debts and will be lucky that we will have a good sum left over to put in the bank. We are going to see a rental property tomorrow but we are concerned we will not pass credit checks. We have defaults as have been on a DMP. We have no previous landlord to give us a reference but was wondering would copys of our mortgage statements showing we have always paid our mortgage help?

I have read lots of mixed reviews some folk say no you wont get a rental with bad credit others say as long as you dont have any CCJs or are bankrupt. Really dont want to go down the route of a gurantor as know one knows of our previous money problems. Shold point out we both are now earning a decent wage £47K joint and will have no debts at all once we move. House is only £50 a month more than our current mortgage.

princeofpounds

There are two main factors in a rental credit check. Ability and willingness to pay. The results are totally discretionary and there is no standard method of assessing if you are a good enough risk or not, so communication is key. If a LL can see that you are now stable they might overlook at a past CCJ or bankruptcy. Don't just try agents but private landlords too through local associations.

Often paying rent up front gets you around a poor credit history. This is because the first 6 months are particularly risky for a LL as they can't terminate a tenancy until after 6 months unless you get seriously behind. Plus it demonstrates solvency.

kinglewis

They will probably ask for a larger deposit if yo uhave a bad credit rating.. you will be able to use some of the cash from your house sale.

Private rentals tend to be more lenient on credit checks than through an agency... (As they probably won't get the checks done).. you will find your mortgage statements will also be useful.

Tuscan

i have asked similar questions my self recently as we will be in the same boat as you when we sell our house, as you have we have bad debts to settle in full with some of the equity but also will have around 80k over, but wont get another mortgage for a while because of a CCJ so will have to rent for a year or two.

most people say be honest with the LL from the start about your history, and often paying say 6 months up front will settle the LL concerns and show you have money behind you, also statements showing a good payment record of your mortgage will help...

let us know how you get on as i will be very interested..

Colincbayley

princeofpounds wrote: »

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This is because the first 6 months are particularly risky for a LL as they can't terminate a tenancy until after 6 months unless you get seriously behind.

Not so, Section 8, ground 8 ( also know as a section 8 notice ) of the housing act, allows a LL to apply to the courts for a possession order if the tenant has two months rent UNPAID. This means only one month and one day in arrears.

princeofpounds

Not so, Section 8, ground 8 ( also know as a section 8 notice ) of the housing act, allows a LL to apply to the courts for a possession order if the tenant has two months rent UNPAID. This means only one month and one day in arrears.

? This is precisely what I was referring to. For me, section 8 qualifies as seriously behind!

If we are being pedantic, it's not one month and one day in arrears, it's one month and one day overdue.

Colincbayley

princeofpounds wrote: »

? This is precisely what I was referring to. For me, section 8 qualifies as seriously behind!

If we are being pedantic, it's not one month and one day in arrears, it's one month and one day overdue.

We are not being pedantic, but as I have said above 1mnth & 1 day UNPAID! Which is not being seriously behind.

The only delay of course would then be the courts, which as we know are a law unto themselves.

longforthesun

Well not heard if we have the house but we were upfront and honest and the guy from the agency said he did not see it being a problem as long as nothing shows up that we haven't told him about. Will update when we hear.

caeler

Have you thought about contacting the EA that sold your property? They might find you something and waive the checks as they know you?

Blankie

Hi there
Just wanted to say that we were in exactly the same situation earlier this year. We were up front with the letting agent and also offered to pay 4 months up front which the landlord readily accepted.One thing we didn't realise (or forgot, not sure which) is that you're expected to pay the first months rent (or whatever you've agreed to) on the day you move in. We didn't have this as it took 3 days for the money to clear from the sale of the house. Fortunately for us the letting agent paid the landlord out of their own coffers (over 3 grand) and allowed us to write a cheque - I bet he didn't sleep very well that week! We have several defaults so even though we're now in a position to buy nobody will touch us so we're going to have to stay here for a while until the banks lose their 'jitters'.

mchale

A guarantor would not need to know of your money problems, they are only agreeing to pay rent/damage payments should you default