Young Couple Looking to rent help??!

it7

Hi Guys,

Me and the girlfriend are looking to rent a flat (this will be the first place either of us have lived in away from parents therefore we have no previous history of rent payments etc..)

I've calculated we can afford to live in the flat as we both have full time jobs, although i'm worried about the credit checks that are part of the process, what if we get turned down?

I've got a few things on finance (about £1700) but im making regular payments, although a few have been late only by a few days. I also have a few other bills that i make payments for.

I also have a credit card which i recently cleared so the balance is £0, But i also have another credit account with limit of £400 and i'm on about £350.

i made regular payments every month with my cc and always made more than the minimum payment, if i paid off my other credit account so it's below 50% would this help?

My girlfriend doesnt have a credit history as such, just a phone bill.

What's the chances of getting accepted?

Thanks guys

[Deleted User]

Affordability matters most, if you have credit problems (missed payments, defaults) you'll struggle but as long as you are making your payments, have steady employment and your salary is enough that you can pay the rent (on top of all your liabilities and bills too) it shouldn't be a problem.

The one issue you may have is that as you have no history of renting (therefore no references from previous landlords) and as you do have credit you may need a guarantor. If you have parents that are earning a reasonable wage this won't be a problem and should persuade any agent that you're eligible tenants. Assuming your parents would be willing to guarantee your rent (if you default, they're on the hook) that is.

My first rental was just after I turned 19, I had no credit history, I didn't even have a mobile phone and I was self employed but because I could demonstrate I had a steady wage (that was enough to cover the costs of living) the letting agents I went with had no problems renting to me.

How much do you earn, how long have you been in the job and how much is the rent you're looking at? If the rent is <40% of your (combined) income I would see no reason for you to have any problems entering a rental. If you're still not sure just phone some agents up and ask about what they require, most will be okay talking to you over the phone and letting you know what sort of things they require from potential tenants.

A lot of people in this country have problems with debt and poor credit but they still manage to find places to rent, you should be fine Remember, agents need you as much as you need them!

it7

Thanks for your help! I'm still a newbie to this so I apologise if I sound silly but what is a 'default?' most of the time my bank just let me go overdrawn and made the payments ontime and then i got just got charged bank charges which i could handle.

The wage thing is an issue, as we both together only earn about 30k (15 each) But i'm looking to secure a new job soon with a salary of 25k +(looks positive) The place we are looking to rent is about £750pcm.

I've been in my current job 16 months and she's also been in hers for about 2 years.

We can pay the deposit they are asking which is 2 months worth.

[Deleted User]

it7 wrote: »

Thanks for your help! I'm still a newbie to this so I apologise if I sound silly but what is a 'default?' most of the time my bank just let me go overdrawn and made the payments ontime and then i got just got charged bank charges which i could handle.

The wage thing is an issue, as we both together only earn about 30k (15 each) But i'm looking to secure a new job soon with a salary of 25k +(looks positive) The place we are looking to rent is about £750pcm.

I've been in my current job 16 months and she's also been in hers for about 2 years.

We can pay the deposit they are asking which is 2 months worth.

A default is when you miss multiple payments in a row and your account enters arrears. If you're a few days late on a payment it's no big deal. Have you checked your credit report before? Although the scores are not particularly relevant it'll give you a good idea of how your credit check will look, there's a main site article about checking your credit history / ratings here. Defaults are clearly marked on your credit report and are pretty bad.

£15,000 per year means you're probably taking home around £1200 per month each, correct? If you're going for a joint tenancy (both named tenants) you'll be spending ~30% of your joint take home pay on rent, which is a perfectly acceptable amount.

Oh side note, if the letting agent(s) you've spoke to haven't mentioned it: you'll most likely also need a few hundred pounds for letting agent fees (administration fee, reference check fees) on top of the deposit and you are expected to pay the first months rent up front (before the tenancy starts).

it7

citricsquid wrote: »

A default is when you miss multiple payments in a row and your account enters arrears. If you're a few days late on a payment it's no big deal. Have you checked your credit report before? Although the scores are not particularly relevant it'll give you a good idea of how your credit check will look, there's a main site article about checking your credit history / ratings here[/url]. Defaults are clearly marked on your credit report and are pretty bad.

£15,000 per year means you're probably taking home around £1200 per month each, correct? If you're going for a joint tenancy (both named tenants) you'll be spending ~30% of your joint take home pay on rent, which is a perfectly acceptable amount.

Oh side note, if the letting agent(s) you've spoke to haven't mentioned it: you'll most likely also need a few hundred pounds for letting agent fees (administration fee, reference check fees) on top of the deposit and you are expected to pay the first months rent up front (before the tenancy starts).

I wouldnt of thought I have any defaults then, my bank usually pays the company and lets me go overdrawn, then they charge me £6 everyday I'm overdrawn.

I have a credit card open at the moment but as i said the balance is £0, i heard its good to have a credit card open but have no balance on it to show you're good with credit? Shall i close this or leave it open?

I did check it last year and it was "very good" but after a few months im pretty sure it went to "bad" but i didnt know why so i rang up the guys at experian and they explain that everytime you get credit or a phone contract etc.. it will negatively effect your score then not until 9 months later (if you've been making payments) it will show up as positive and quickly rebuild, but i havent checked in a while.

With the fees they are charging £200 non-refundable for admin, CRA checks etc... doing it monday, lets hope for the best!

Also would they actually ring your employer direct? also what questions do they ask?

thanks.

ValHaller

citricsquid wrote: »

A default is when you miss multiple payments in a row and your account enters arrears. If you're a few days late on a payment it's no big deal. Have you checked your credit report before? Although the scores are not particularly relevant it'll give you a good idea of how your credit check will look, there's a main site article about checking your credit history / ratings here. Defaults are clearly marked on your credit report and are pretty bad.

More specifically, at a certain point, the lender will send out a 'default notice' requiring the account to be put straight within a certain amount of time. If you do not comply, then a default will be entered on your credit record.

it7

ValHaller wrote: »

More specifically, at a certain point, the lender will send out a 'default notice' requiring the account to be put straight within a certain amount of time. If you do not comply, then a default will be entered on your credit record.

I'm not sure if i've ever had that? I mean i've had letters from the company's saying your payment is due by "this date" please make the payment blah blah blah..

fingers crossed :think:

R_P_W

When you say bank let's you go overdrawn and charges you 6 quid a day....is that an arranged overdraft? If it isnt then regularly going into an unauthorised overdraft isn't good and won't look good.

R_P_W

Moving into your own place can be a big deal with all the costs. Why are you going overdrawn if your living with parents?! Do you pay board at the moment?

it7

i do have an overdraft, and there has been a few times that i've gone into it, then you get charged overdraft charges? there was 1-2 occasions where i have slightly gone into an unauthorised but i quickly sorted that out.

& yeah i have to pay rent & travel which at the moment is a good 50-60% of my wage!

Werdnal

Remember all the other expenses and bills you have to factor in, which you may not contribute to at the moment:

Council tax
Utilities
Broadband/landline
Insurance
Tv licence
Food
Toiletries


You may easily be able to afford the rent, but there is much expense to having your own place than you may realise at first glance. Sit down and write a list of what your monthly expenditure is likely to be.

Also, as first time renters, LL/agent may ask for a guarantor back up your tenancy. Do you know someone who would be bale to do this for you? They normally need to be a homeowner/high earner and will need to be credit checked themselves to ensure they can cover missing rent should you struggle to pay. You may be adamant this will never happen, but LL may want the extra security.