Renting with an IVA payer - will my rating be affected?

Captain_LeChuck

Hi everyone,

This is the first time I've posted here. My brother and I are looking for a place to rent together. I have a good credit rating, but my brother is in his first year of an IVA.

If we rent a place together, with both our names on the lease (and therefore the energy bills) will my credit rating be adversely affected?

Thanks in advance for your advice.

RuthnJasper

Hi there; welcome to MSE!

I can't see that your credit rating would be affected by your brother's IVA. I have recently come to the end of mine but, when I entered into the arrangement, I was living with my parents and paying my way, and their credit ratings weren't affected.

It's an individual voluntary arrangement, so should apply to your brother alone. The only situation in which it might have some effect on you would be if, for example, there was a credit card in both your names which was part of his IVA.

Other people will be along with better advice, I'm sure, and I'm not certain about utility bills - it might be that it's better if it's just in your name, with a legally proper, witnessed statement from your brother about how much he is expected to contribute each month. I'm not saying that he would do anything untoward, but you need to make sure that you aren't suddenly left with a two-bedroom place that you're struggling to afford by yourself.

One other thing that I encountered when I had to move out of my parents' home was the fact that I couldn't afford rent, council tax, bills, etc., and continue the IVA monthly payments at the original amount. I was able to renegotiate a lower monthly repayment over a longer period of time with my IVA provider so that I could afford the changes in my life (and I was able to prove that it was reasonable).

I wish you and your brother much happiness in your new home, hope you have fun. x

tinkerbell28

Do not get utility bills in joint names.