bad credit. denied mortgage with 5% deposit can we rent whilst we wait?

foxtrot94 · 22 March 2015 at 2:53PM

Hi all. I apologise if there is already a thread like this I couldn't see one.
Myself and my partner spoke with finial advisor who applied for mortgage agreement. My partner has a default for £300 which was settled in 2013 however this could go again us we know. We will find out tomorrow if we are able to have a mortgage with a 5% deposit so they will say yes or they will say maybe with 10-15% deposit or it will be a definite no.

What I would like know is if we aren't able to get mortgage and have to save bigger deposit would we be able to rent with the credit we have. I have about 700/780 out of 900 but my partner has low one due to the default also are they ways around renting so it could just be in my name but he live there??

jamie11 · 22 March 2015 at 3:14PM

If you have a mortgage on a property in your sole name you can have anybody you like to live with you (even anybody you DON'T like)

bbk87 · 22 March 2015 at 6:12PM

The credit 'score' you speak of is meaningless. You aren't assessed based on this 'score'.

When renting, they credit check you but not as in-depth as for credit agreements. They can only see certain information IE whether you have any cci or are bankrupt etc. I have 5 defaults on my credit file and managed to pass 'credit checks' for renting my flat.

You would need to discuss with the lettings agency / landlord whether they will accept one person on the tenancy, and 2 people living there. Usually if you rent via a lettings agency, they will require those on the tenancy to be earning £x of the rent per year. Ours was we had to earn 27x the rent pa.