Tenant Check - Bank Overdraft

Londonwoman2016

Hi,

Me and my husband are currently being referenced for a new apartment. The affordability check is based on my income since my husband is in a new job with probation period. My income alone is enough to cover the rent and my employer has confirmed my salary in a letter.

We have good credit ratings as in never missed payments, good landlord reference for our current apartment that we've spend over 5 years in.

We both had to provide bank statement of the past 3 months with our application too. We've provided them, but my account has been in an agreed overdraft for the full 3 months (reason is that we got married and few big expenses came up). It's maybe a bit stupid but from the overdraft I did "save" money too to be able to pay for deposit etc. if I wouldn't have done that, I wouldn't be overdrawn. I will get a big bonus next month that will fully clear the overdraft, but the letting agent doesn't know this yet.

Will my overdrawn bank account get us declined for this apartment? (a guarantor is not an option as we are both from the Netherlands, although we have been living in the UK for the past 5 years. All our relatives are in the Netherlands and our UK friends are renters too)

Thank you for your responses.

Guest101

I would never provide a bank statement to an agent, just asking for trouble.


But no an overdraft wont generally exclude you.

Londonwoman2016

Thanks for your response. I wasn't too happy with it either, but I assumed we wouldn't have a choice...!

Guest101

Londonwoman2016 wrote: »

Thanks for your response. I wasn't too happy with it either, but I assumed we wouldn't have a choice...!

Well you may not if you want to get that property through that agent. But I'd just find another property.


There's absolutely nothing to be gained from a LLs perspective from seeing a bank statement.


Rent payment is confirmed by the previous landlord, and income confirmed by employers reference.


In both cases you could supply a redacted statement. But it makes no difference if you spend £50 at tescos or £300 at ikea or whatever,

theartfullodger

Guest101 wrote: »

...............There's absolutely nothing to be gained from a LLs perspective from seeing a bank statement. ..............

Oh there is.....

Confirmation that the stated wages are actually real..

Confirmation the the regular full rent payments are both: (surely a landlord would never say they are great payers just to get rid of bad payers would they...)

Confirmation that all those benefits they've told you about are actually being paid to you

It's surprising what you can learn from looking at a bank statement... look at your own and learn (I'm not talking about the 3 areas above...)

Mossfarr

I'm a landlord and do my own tenant referencing and I always ask for at least three months bank statements. Its an accepted way to determine if the prospective tenants manage their finances and can afford the rent.
As previously mentioned by other posters, its also a way of confirming details of employment and salary income as well as previous regular rent payments.

No bank statements - no tenancy, simple!

dekaspace

Mossfarr wrote: »

I'm a landlord and do my own tenant referencing and I always ask for at least three months bank statements. Its an accepted way to determine if the prospective tenants manage their finances and can afford the rent.
As previously mentioned by other posters, its also a way of confirming details of employment and salary income as well as previous regular rent payments.

No bank statements - no tenancy, simple!

Do you provide your tenants three months bank statements to make sure you are paying the mortgage and other bills?

fishpond

dekaspace wrote: »

Do you provide your tenants three months bank statements to make sure you are paying the mortgage and other bills?

No, but LL's have to jump through hoops and more to get the property in the first place.
So, why shouldn't the tenant have to prove to the LL that they can afford the rental payments and are financially responsible?

dekaspace

fishpond wrote: »

No, but LL's have to jump through hoops and more to get the property in the first place.
So, why shouldn't the tenant have to prove to the LL that they can afford the rental payments and are financially responsible?

This argument could go on, but the point being the landlord basically is saying you are only good enough if they say so, when the landlord themselves could be far from perfect.

For all the tenant knows the LL could have debts or other hidden skeletons.

theartfullodger

dekaspace wrote: »

Do you provide your tenants three months bank statements to make sure you are paying the mortgage and other bills?

It amazes me that in over15 years of being a landlord no tenant has ever asked for proof I own the houses, have valid mortgage permitting renting, pay mortgage or have landlord insurance. I'd gladly provide proof, but never been asked.

Not that I have no criminal record, declare rent to taxman, pay maintenance people, etc etc etc etc..

Weird, frankly.

dekaspace

theartfullodger wrote: »

It amazes me that in over15 years of being a landlord no tenant has ever asked for proof I own the houses, have valid mortgage permitting renting, pay mortgage or have landlord insurance. I'd gladly provide proof, but never been asked.

Not that I have no criminal record, declare rent to taxman, pay maintenance people, etc etc etc etc..

Weird, frankly.

A few of the landlords I have rented from have within a few years of me renting from them had to sell houses they owned, of course one who owns 20 houses and having to sell 1 might not be much but someone who owns two selling one might be and had one who claimed he wasn't making ends meet so had to work full time on top of being a landlord (and thus couldn't afford repairs, or to even visit) Now if he was telling the truth it sets alarm bells ringing

I mean you hear on here about unregistered landlords and other such problems, and even people who are renting out property they shouldnt.

And I don't know if it counts but a few years back my friend had a unregistered landlord so he couldn't claim housing benefit.

I have never asked myself for proof but with those in memory maybe I should of.