renting with bad credit

codchunks

hi all,

i am new to this website. I have been in council accomadation for several years now and my family is growing. I live in a 2-bed flat and the council cannot rehouse us. I want to give up my council tennancy and rent in the private sector, however, i am a student with poor credit history - no cjj's though: i do not have a Guarantor either. I am on housing benifit and was wondering whether a landlord would take a year's full rent as a deposit?

JustJewels

Hi codchunks,

(Love your name, LOL!). Yes, it's entirely feasible that a landlord might accept rent in advance. Happened to me when I returned to UK after many years overseas (no credit history). However the landlord will be concerned with what happens after initial period.

So you'll need to find a landlord who is comfortable with the idea that you are on HB as well, unless you always intend to pay in advance.

Are you really sure it's a good idea to give up your council tenancy...? Of course it goes without saying that you should do your research thoroughly first. Hit the phones and see how many landlords in your area would be agreeable to your situation, and what type of rental properties are available...

Good luck!

JJ

BitterAndTwisted

Yes, I believe that they would but please be aware that once they have your year's rent in advance in their back pocket there are risks. What if the landlord is in arrears with their lender and is on the brink of repossession? What if the landlord doesn't carry out essential repairs and you're stuck there?

I would suggest that you attempt to exhaust every possible alternative to giving up a secure tenancy if you haven't already.

codchunks

okay, thanks for the advice ... codchunks is a childhood nickname lol

the situation is, the council have said that i stand no chance of being rehoused within ten-years and i have three children. However, not to stereo-type people from council estates, however, i am out of my depth with trouble-making neighbours who are making our life hell.

So the deal is: my ex-partner cannot act as Guarantor because he is a student with no income, who lives with parents. So my ex has kindly offered to use a year's rent as deposit ... not upfront, so if i do not pay my rent they have a Guarantor. he has kindly offered to do this until our children have left home. I hope this explains my position better ... so the landlord would have a year's rent as deposit and i would use my grants, loans and hb to pay my rent and if i didn't renew my tenancy, providing everything was okay, i would get my deposit back.

p.s i didn't think landlords could accept housing benefit if they had a morgage.

any further guidance would be brill ... thank you

BitterAndTwisted

Lodging a year's rent as deposit is not the same as acting as a guarantor. A guarantor is liable for the whole of the rent for the entire duration of the tenancy if the tenant does not or cannot pay.

codchunks

yes, that's right, however, Guarantor is a legal context for Guarantee, which, if lodging a year's rent as deposit for the fixed tenancy, would make it a guarantee, thus acting in the same way as guarantor!! So, really, i think i have answered my own question ... thanks for your advice

my_gorgeous_ellie-belle

It is possible but not easy - it's our situation really. Best bet is to go to the smaller estate agents as they tend to be more willing to help, the better known ones tend to look down their noses and turn you away at the mention of poor credit history.

When he moved to the house we are in now we paid 6 months up front on a 12month contract - all of our rent reciepts were for 6 months ahead. It is a risk, but unfortunately a risk that you may have to take if you struggle to find a property.

In my honest opinion i'd probably try the route of council swaps if that option is open to you. Private renting is a money pitt, always paying out for soemthing or other (referencing, renewing contracts), way over inflated prices and 90% of estate agents are a PITA to deal with when things need repairing - much worse than dealing with the council IMO.

Good luck!

Lion-king_2

Just for the record, I recently was worried about renting with a bad credit file, however I visited a few letting agencys and offered a 6 month in advance rental fee (Not 12 months) and all jumped at the idea and the landlords attitudes were the same, in other words "Yes Please!"

debrag

Are credit scores worth anything? I'm sure I read somewhere that a credit score doesn't actually exist or isn't used.

My 'scores' on checkmyfile are very poor! well apart from Experian but then they have no credit info for me on there.

berkshirelady

does your local council have a deposit guarantee scheme? My local authority has one. I don't know that much about it in detail, but it's there to enable people in need of housing, and on benefits, to rent in the private sector. The local authority inspects and registers properties under the scheme to ensure they meet basic health and safety standards. They then pay the deposit up-front for you, and then you pay it back to the council over an extended period of time.

I'm not sure if this would suit your financial circumstances but it seems like it could be a good option for you, and I would hope that your housing dept would point you in the direction of this sort of assistance, especially if you are planning on moving out of a council property and freeing it up for another family.