Lettings Application - 3 Months Bank Statements

Christopherm

I am applying for rented accommodation through an estate agents, but they want to see three months bank statements. As I have been unemployed for around 4-5 months, I have been left using my overdraft for certain periods during my unemployment.

I'm just wondering if this would affect my application. Although, on my bank statements, it does clearly show that I have paid my rent and on time on my current property.

However, I will be back in employment in around four weeks time.

Thanks in advanced!

Gwhiz

Looks like you are going to have to explain the situation to the agent.

frisbeej

If you have a job offer letter you could show that to the agent. I guess they are looking for regular income coming into your account.

Christopherm

frisbeej wrote: »

If you have a job offer letter you could show that to the agent. I guess they are looking for regular income coming into your account.

This particular property accepts DSS, so whether I'm in employment or not is not an issue.

But my question still remains - when an Estate Agents looks at your bank statements, what are they looking for?

BitterAndTwisted

Not only are they wanting to see proof that you're paying your current rent in full and on time, they want to see regular payments going in sufficient to cover your outgoings. Being unemployed and dipping into overdraft may not provide enough reassurance that you will be able to afford the new rent.

Even if they claim to accept applications from those dependent on LHA, it's possible that there may be a number of other candidates who are in paid employment who could look like they might be less of a risk to the landlord.

In your position I would wait until you have secured this paid employment if you possibly could.

Solsol

It's been a while since I was renting and I wasn't asked to show bank statements but maybe since the mortgage criteria have become stricter the letting agents might be just doing affordability checks etc?

Having spent 2 hours in the bank having to justify how much I spend on everything from birthday presents throughout the year to shampoo, I wish you good luck!!

dancingfairy

I presume it's for a credit check which you will almost certainly fail. You will need to be honest with the letting agents and may need to offer a guarantor or 6 months rent up front.
df

Christopherm

dancingfairy wrote: »

I presume it's for a credit check which you will almost certainly fail. You will need to be honest with the letting agents and may need to offer a guarantor or 6 months rent up front.
df

I have a guarantor who owns 1 and half properties which they have acknowledged and accepted.

dancingfairy

It might be worth checking if they then need to credit check both of you or whether they would just credit check your guarantor.
df

princeofpounds

It's been a while since I was renting and I wasn't asked to show bank statements but maybe since the mortgage criteria have become stricter the letting agents might be just doing affordability checks etc?

The mortgage affordability checks are specified in some depth by the banking regulators.

Letting agents have no regulation and no professional requirements except hair gel and a company branded mini.

Don't confuse the two.

The agents are just asking for the bank statements because they want to. The agents and/or the landlord have no official criteria for making a decision from that data.