renting and bankrupt

kediler

I declared myself bankrupt last year. My ex left me with a load of debt but infortunatley it was in my name. He stopped paying for it which consequently made a lot of trouble for me.

Anyway, to cut a long story short, im getting back on the straight and narrow. Ive now been made a permanent full time employee, earning good money with a pay rise on the way and ive seen the flat of my dreams!

I have put down a holding deposit on it whilst all the normal rental checks/paperwork are complete.

I have given them a character reference and also an employers reference as I can not provide six months pay slips. I also have a guarantor for this reason. My guarantor has provided all the necassary documents required.

I completed my tenants application form and i noticed in the small print it said that I was authorising the estate agent to do a credit check. I have not mentioned that I am a bankrupt though.

I obviously know that my credit history is appauling and im now at my wits end worrying incase I get a phone call saying they cant let me rent this flat. I have provided everything else the estate agent requires..even extra's such as paying my landlord a year's rent in advance but he is happy for a monthly pay. (but then he isnt aware of my credit status). is it within the estate agents rights to tell the landlord? im not sure how the system works

Is it possible I wont get this flat because of my circumstances? I have never come across this situation before. The Agent hasnt mentioned anything about refusals due to a bad credit history either...(yet)

Thank you in advance, any help is appreciated.

silvercar

honesty is the best policy; the credit check will show all in any case.

explain to the landlord that you now have a good job. As long as your guarantor passes a credit check and is shown to have the means to pay you should be OK though there is always a risk a landlord will be wary.

Alan_M_2

You have to be up front about things like this, it's better in the long run.

Just be prepared to be asked for a larger than usual deposit.

Although not bankrupt, when I changed the status of my business from sole trader to Ltd company it effectively wiped all my credit history for a year until the first set of accounts were produced. During this time I couldn't rent without paying the entire 6 months up front.

MJMum

I would imagine that you will be OK with a guarantor, as it would be them who would be chased in the case of default.

catewithers

We have a similar problem - DH and I have an appalling credit rating - he has 1 CCJ - both of us have outstanding defaulted debts, although none of these relate to mortgage/rent/council tax/utilities etc. We're desperately looking for somewhere to live together having been separated for a year. We also have 2 small dogs which further complicates matters.

Anyway, having found the place of our dreams - practically - we've just heard from the agent this morning that the landlord is happy to accept our dogs! Woohoo!!! Except of course that we haven't yet broached the issue of our dodgy credit rating. I plan to be honest about it with them - after all they're going to find out anyway - and we are able and willing to pay 6 months up front, just. But we don't have a guarantor and both of us are loath to ask relatives to do that for us.

Any landlords out there who would like to comment on their feelings about being presented with a tenant such as ourselves? What would you expect? Would you accept them?

catewithers

Also would be interested to know the answer to Kediler's question - is the LA legally obliged/allowed to tell the landlord the details of the credit check?

silvercar

catewithers wrote:

Also would be interested to know the answer to Kediler's question - is the LA legally obliged/allowed to tell the landlord the details of the credit check?

The LA is acting for the landlord, if he doesn't pass on the information the landlord won't be able to decide whether to accept the tenant. The tenant is asked to sign that they agree for the credit check to be done and info given to the LA and landlord. If you refuse to agree to be credit checked, I doubt a tenant would be accepted.

As a landlord I would want a guarantor to be provided and credit checked. I would also require 2 months rent as deposit. This is just because I would feel you are more likely to default on your rent and I couldn't even go to court to evict until you were 2 months in arrears. I would also be afraid of being "used" by you hoping to be evicted to gain council housing.

If you could provide 2 months deposit and a guarantor I would be more than happy to let to you. I would also be more impressed by someone who was honest and upfront than someone who didn't tell me about their bad credit until I discovered it.

rosysparkle

With Letsure an undischarged bankrupt would probably be a straight decline, no option to have a guarantor or to pay rent up front. However, if the agent have referenced the guarantor and they pass, a landlord may accept you on that basis. It may depend on the terms of any insurance the LL has against defaulting tenants.

We don't tell the landlord the full details of the credit checks, just whether the tenant has passed or failed.

catewithers

Update - DH went to LA this lunchtime to pay holding deposit and speak to them about our credit rating. They refused to even take the deposit and said that as he has a CCJ, his name can't go on the lease and so they are discounting his salary. I can't afford the property on my salary alone. We've offered to pay 6 months up front and the LA has grudgingly agreed to speak to the LL for us - not holding out much hope. We've been looking for so long and have already lost 2 properties because of unscrupulous LL's. Feel like we're never going to get anywhere.

Alan_M_2

6 months in advance effectively wipes any requirement for credit checks at all, after all you are being given no credit, you are paying in full up front.

If they say no to this they are being quite unreasonable.

For a LL, 6 months in advance is ideal situation number 1 - no risk of default.

kediler

thankyou all for replying.

My mother has checked her credit files online. Experian give her top marks for credit history. She also checked equifax but they have given her a crap rate because somehow my name is on her files and they have managed to mix her up with me!!(We both have the same names, only difference is she is mrs, im miss, she's 59 and im 29)

It also looks like the esate agents have credit referenced her via this credit search which is just bloody typical! They did the search on tuesday 23 jan but ive still not heard from the agency so im unsure what they are holding on for. I would have thought if it was anything bad then they would have to tell me as the property would need to go back on the market asap?

If i was to call them tomorrow and just tell them my problem is this the best way or am i a little too late? I am more than willing to pay the landlord anything he needs up front..i'll even give him more rent than he's asking!

The whole scenario is giving me one big bad headache and i apologise for rambling. But thankyou all for your help:o