Finding a deposit for rented home in London

Balding

Hello there,

I've recently graduated and found a grad job in London, the only thing is that I'm struggling to come up with the money for a deposit since it's like 6 weeks rent plus agency fees. I've found plenty of houses within my budget (I'll be renting with some people I know) but I didn't realise the deposit would be so much. I had a job during uni and have saved enough money to cover my first month rent and with a very small amount spare for food, but then I still need to pay the huge deposit fee which I don't have.

Unfortunately I don't have family to borrow from. I've spent the summer at various friends houses that have been kind enough to let me crash in their homes since I had nowhere to stay for the summer and hence I've been unable to get a part time/temp job.

Are there any options out there? I've had a look at deposit schemes but I think they are for people out of work on some form of income support. I suppose I could apply for a loan but because I'm technically 'homeless' this may be a bit difficult also I'd rather not take on a loan with high interest rates, however, I will if I have to of course.

Any advice would be great.

MJ12

Do you still have your student/graduate bank account with 0% OD facility?

Do you need to pay just 6 weeks now or is it 6 weeks + 1 month in advance? By the time you need to pay your first month's rent, I guess you would have had your first salary paid. So if it's the former you would just need 2 more weeks on top of what you already have.

Other ideas, can your employer help? Can your new house mates help?

Balding

MJ12 wrote: »

Do you still have your student/graduate bank account with 0% OD facility?

Do you need to pay just 6 weeks now or is it 6 weeks + 1 month in advance? By the time you need to pay your first month's rent, I guess you would have had your first salary paid. So if it's the former you would just need 2 more weeks on top of what you already have.

Other ideas, can your employer help? Can your new house mates help?

I had a student OD, spent all of it in 1st year then spent the rest of the time paying it back. Once I paid it back I thought it was best to just get rid of it and only live on what I actually had earned. In hindsight I probably should have kept it.

I'm guessing it's 6 weeks plus 1 month rent as most landlords request this.

I don't think my employer can help, although I'm not entirely sure. I definitely can't ask my new house mates as, although I know them, I don't know them well enough. Basically I don't have anyone to borrow from personally. So my options are some form of bank loan or something along those lines. I just thought I'd ask on here if anyone knows of any better solutions that won't put me in as much debt.

pmlindyloo

First of all check exactly how much you have to pay and how it is split up.

Is it a joint tenancy agreement where the deposit is split between the house mates or separate tenancy agreements?

Once you know how much you are short then some options:

Speak to your bank and ask for an authorised overdraft for however long you need.
Speak to your employer and ask for an advance of salary.
Speak to your landlord/letting agent agent and see if they will break down the deposit into two amounts (get it in writing)
Sell something/pawn something

Have you got a guarantor? Would they lend you the shortfall?

How much are we talking about?

Balding

pmlindyloo wrote: »

First of all check exactly how much you have to pay and how it is split up.

Is it a joint tenancy agreement where the deposit is split between the house mates or separate tenancy agreements?

Once you know how much you are short then some options:

Speak to your bank and ask for an authorised overdraft for however long you need.
Speak to your employer and ask for an advance of salary.
Speak to your landlord/letting agent agent and see if they will break down the deposit into two amounts (get it in writing)
Sell something/pawn something

Have you got a guarantor? Would they lend you the shortfall?

How much are we talking about?

The rent will be split between 4 but we will all sign the contract and pay 1/4th rent, deposit, fees etc. Based on what I can afford per month on rent and what the typical letting fees/deposit is I'm guessing I need an extra £1k - 1.5k give or take to cover the first month rent plus deposit.

I don't have a guarantor, however, I thought I didn't need one as I'm no longer a student and will be starting a permanent job i.e. I can prove I can pay the rent.

I'll probably go down the bank OD route, if my employer can't help out. I will also ask the potential landlord about splitting the deposit.

gaz141

Sounds like you might have to abandon the idea of sharing with people you know and rent a room in someone else's house which will be cheaper with no agency fees and not so much of a deposit. This should give you some breathing space to get paid and start saving a bit.

[Deleted User]

It sounds like you are not very well prepared.

Go back to the agency and ask them how much each tenant needs to pay, including their fees. Talk to the other tenants, see how they are paying the fees/deposit/rent in advance, see if you all know how much is required.

I know I had to get a bank loan when I first started renting in London, and get an evening job to cover my expenses as well as my full time day job.

Renting a room rather than taking part in a house share is an option.

siamesebengal

Get a grad account with an interest free overdraft. Should be enough to cover the deposit, and you can clear it long before it converts to a normal one.