Renting a House, HELP PLEASE!!!!!

tomneedinghelp

Hi Everyone,

Straight to the point, I have a 'Poor' credit score but my partner has an 'Excellent' credit score, can we rent a house?

The technical stuff!!

We bought our first house about 5 years ago which needed a lot of work doing to it. The housing market has crashed since, and we can't get our money back for it so not worth selling. When doing it up we ran out of money so ended up using loans and credit cards (all in my name) This got us into financial bother and have since signed up to a Debt Management plan which is going well and we have nearly paid half of it off in the last few years. Another 3 years to go!

Anyways, we have now moved out of the house and back in with parents. We have rented the property out and everything is going smoothly. The reason we moved back in with parents is so we can stay for a few months and get a bit of saving done, this is important for me as, if something goes wrong with the property we own, we must be on the case and fix it straight away being a 'good landlord'

We are now looking at properties to rent and are getting excited for our move, which will be just after Christmas. :T

With my financial credit history not being good, I have a very poor credit score which will obviously put landlords off. My plan was to get a guarantor which wouldn't be a problem, however quite embarrassing on my part. My partner, who I have always tried to protect financially by putting every debt in my name, has a credit score of 984 putting her in the 'Excellent' category.

Can we rent a house based on her score or will they check both of us?

We plan on renting for about 6-10 years until my score is back on track and we can get another mortgage for our 2nd home.

Another question (just for your opinion?!) Do you think we would be better getting a loan in her name to cover the debts and then I can at least start getting my score back on track now.

Any help would be gratefully received as I really need it here!!!

Thanks you guys!!! :beer:

Magpie27

Hi OP your situation is fairly similar to ours when we rented the place we are in now we put it all in my name with OH being listed as a occupant. Therefore they only credit checked myself but we needed a guarantor as my wages wasn't enough to offically cover the rent etc. We were completely honest with the landlord when we found somewhere and he was really good about it and didn't have a problem with it. Beware that they charge for the credit check for the guarantor as well. Good luck I hope you find somewhere and everything goes OK

Fire_Fox

Scoring is done differently by each financial institution/ credit reference agency so that number is relatively meaningless. Many letting agencies want to credit check everyone who is party to the AST, so that they are covered if the relationship/ friendship breaks down and one person moves out. Does your partner have enough income to rent the place on her own? Can you offer six months rent up front? If not offer a guarantor.

I can't see the point in your partner getting a loan and you risking trashing her credit worthiness. Presumably your DMP means the interest is frozen which gives you the best chance of paying these debts off. Many on the Debt Free Wannabe board cut their outgoings to the bare minimum, save up and start paying off their debt early. IIRC defaults fall off your record after six years, late payments stay on until you close that account.

Don't forget if you get a tenant who does not pay rent you will have to cover the mortgage. Presumably you are all above board with consent to lease from the lender, landlord's insurance, gas safety certificate, registered for income tax?

Lastly consider the impact of you starting a family if you wish to do this, be prepared for a difficult pregnancy meaning your partner cannot work or a poorly baby afterwards. More reasons not to get another loan and overstretch yourself.