Renting a house when you have a poor credit rating

wobblymummy

Hi there

Just looking for some advice really. We are struggling to maintain our mortgage and commitments and have decided to sell our property, the value has come up ok but its doubtful there'll be any surplus.

We can live with this. I am starting a degree in September this year so we decided to sell the property and rent until I secure employment when I have finished. Husband works as a psych nurse and has a secure job.

We have always maintained our mortgage and are in a payment plan with CCCS, whilst we have no CCJs we do have late payments and defaults. We have seen some ideal and affordable properties we can comfortably afford to rent (less than our mortgage) and our worry now (after finding a buyer of course) is that we may fall foul of a credit score. We are married with two children.

We will have the deposit etc for the rented property. We are just trying to be sensible before we really run into problems with our mortgage

Thanks x

Rebecca01

They may ask for a guarantor, if your rating is that bad.

jamie11

I think you may come to regret selling, difficult as it is at the moment to keep up with all payments you will find it even more difficult to find the deposit for a house again if you sell now. Have you asked for help? If you are going to be a full time student then that will cut your council tax bill down by 25pc.

It may also be that your husband could find a better paying job than nursing or you could find a part-time job while studying as well.

You could speak to your mortgage provider about extending your mortgage.
Be honest with them about your problems and see what they might offer.

property.advert

Your rent could well prove to be more than your mortgage. You have no right of tenure. Your rent could go up 20% at renewal. Your financial situation may never improve enough to get back on the housing ladder. Even if it does, you are going to be screwed for years due to bad credit scores.

There is truly little positive to say about your decision and I urge you to reconsider.

ruggedtoast

Have you run a credit score on yourself? If you cant afford the mortgage you can't afford it. I would try and avoid selling to rent right now though.