Estate Agent - Credit Checks HELP!!

callyh26

I currently rent from a private Landlord, and my boyfriend owns his own house, I have a daughter, another with my partner and we are expecting baby No 3 in 5 weeks time! We are wanting to move in together but basically his house is too small only a 2 bed and my rented although we could make do its a 3 bed bk to bk no garden and nightmare neighbors so we have decided to rent somewhere new! Basically since we started looking all the 4 bed houses with private landlords are in wrong areas and the one's threw estate agents charge fee's ranging from nothing to 150 pound FOR Referencing/Credit Checking. I know this is normal practice and we have our bond and months rent so no worries there, and i have already given my months notice as my tenancy is in the last month so we are now running out of time to find something! My concern is neither of us has cracking credit files due to old debt! No CCJ'S, IVA's or BR, but we do both have Defaults. On CheckmyFile it shows a credit score 481 which is the score used by lenders and a score of 722 for the data used by landlords! How accurate is this? Do Estate Agents check different things to say what a Credit Card Application would check? I am a full time mum and get around 7000 per annum in tax credits and child benefit and my partner earns almost 30,000 pa working full time in a job he has been in around 7 years! I can get good references from my landlord, and obviously my fella can get a work one and prove his income etc, but how much of it is relied on the credit file? I have no rent arrears and he no mortgage surely this is what they'd check plus affordability factor rather than seeing you didn't pay a cc debt from 5 years ago?? We have found 2 property's that are perfect for us one who charges 20 quid per adult and one who's fee is 150, i just dont want to pay it to be turned down for a bad credit file! Can anyone advise please as i now only have just over 2 weeks to find a house Thanks

Tixy

Letting agents can only see the public info - they cannot see the credit account information that details your debts/defaults.

All they will see if whether you have CCJs or a record of insolvency and whether you are on the electoral roll.

callyh26

SO hopefully with the income from my partner and good references we shouldnt have an issue?

BitterAndTwisted

What's he going to do with the house he owns which presumably he's not going to be living in any longer? His mortgage-commitment is going to have an effect on their affordability-checks, I expect.

callyh26

Its rented out so theres no issue there

callyh26

We handed the Forms and fee in today. But off the advice i was told where they can only see public info etc they have told me they do a full credit check including weather you have gas/electric arrears?? Is this correct as mine and my partners credit files aren't even a accurate on some of the data! For example he has paid one of the loans off but it hasn't been updated yet! and some of the old debts that are in default are with companies its not showing and he is on payment plans also not showing! Worried now! As we have to move next week !! We did however manage to get a guarantor that says they have an OK rating! So if we fail will they take us on his? Even though my partner earns very good money so we can more than afford it! Seems ridiculous so much is based on credit files!

ObiWanFan

Good luck! i'd be interested to know how you get on.

I'm also needing to move home due to getting a new job and reduce my almost 2 hr commute, but like you need to go through a letting agent. My credit record is excellent through Experian but dire through call credit. The information on call credit is not entirely correct but that's another story.

Unfortunately letting agents are seeming to get around what they can and cannot see as they're going through HomeLet... and unfortunately they use call credit as their reference agency. I'm going to declare my previous financial difficulties but i'm now so worried that i'll be refused the flat and i've paid £225 in fees to the estate agent, which i'll lose.

I'm wondering if should enclose a copy of my experian credit report with my forms to try and present a more balanced view? I have recently got 1 credit card in an effort to build my credit rating with call credit and my record does show regular payments - in full and on time with my mobile phone provider and no difficulties with my bank. Any thoughts would be appreciated! thanks )

callyh26

My EA Use Let Alliance and looking on there website all they check is the public info so like someone said!! We should know by Friday but have a feeling the question on the form asking if you have bad credit is just a way for you to 'drop yourself in it'[ in a way as if they cant see that info there's no reason to declare bad credit, but spose that's a risk!? Makes me mad they make it so hard for people! My partner earns over 4 x the rent a month so affordability isn't an issue! Surely that should be more important than if someone has a credit card from 5 yrs ago they defaulted on? The fee's are ridiculous too! It costs about 8 quid to do the checks per person we had to pay 125 which is bad enuf but 250 is extortionate!! Although i've heard of people paying more and being asked for the bond up front! Why would you pay a bond before even being accepted for a property!?

ObiWanFan

I know - the whole letting agent thing seems a BIG scam!!! but what choice to people have when there seems to be such a shortage of private landlords??

I so hope you're right regarding what they can see - I was worried that by using HomeLet the letting agent would see more than they were otherwise entitled to. I can't find anything on HomeLet's web site about what information they will give to the LA so perhaps i should ask HomeLet directly??

I'm also in a similar position to your partner - i earn 4x the rent too so I hope so much they don't just take the credit record stuff into account.

I hope it works out for you - i'll keep checking this thread and i'll post updates on my situation too!

callyh26

I checked on there site and emailed Let Alliance they have been very good getting back to me and assure me they have a 48 HR turn around So fingers crossed we'll pass and get the keys friday! It is such a farce though ive always had private landlord because of this but we need a 4 bed now and there is just nothing about or there too much money for old terraced houses threw private LL's! I will let you know the outcome

ObiWanFan

just had a more detailed look at the homelet website. It depends on the agreement the LA has with them will depend on how much information they will find out about you. The thing is, the LA hasn't filled out onthe form they've supplied to me what service they have!

this is what they promise to provide LAs on their Optimum service which is the most comprehensive one they seem to provide:

We’ll check for any adverse credit history such as, bankruptcy, CCJs and court decrees (I have none of those so that'll be ok)
We’ll check if there’s any previous names and addresses which they haven’t disclosed (well they've only asked for the last 3 years which is what i've provided so that'll be ok)
We’ll check whether there’s any undisclosed credit history which is linked to their current and most recent homes (but they've only asked for the last 3 years... will they provide information beyond that?)
We’ll check that the banking details provided are for a genuine bank account (yep that's ok!)
We conduct a check against HomeLet’s own Default Database – this may indicate whether your tenant has not been able to pay their rent in the past (God knows what that is... should be ok on that front)
We conduct a Financial Sanctions check, to make sure that your tenant isn’t registered to any of the Government’s Asset Freezing lists - because this could mean they’re unable to pay their rent in the future (That should be ok!)
We’ll speak to the tenant’s previous Landlord or Managing Agent to ask them for a reference (they've not asked for that information on my form)
We’ll also speak to their employer to check the tenant is being paid what they’ve told us and that there is no reason their employment will be terminated any time soon (yep that's ok i've already spoken to my employer and they're expecting an email).
On our Optimum reference we are also able to reference Overseas Guarantors - haha i wish!!

When i break it down like that it doesn't sound so bad.... I hope that's the case!