Renting with a Guarantor Who Had an IVA

novotose

Hello All, I'm hoping for some advice.

For the last five years, we have been privately renting in a situation that has been blissfully free of Estate Agents. However, we now need to move and as we can't find anything without agent involvement we are heading back to that heady world of credit checks and administration fees (yay!!)

Due to my status as a Full Time Student, the letting agency has suggested I might need to have guarantor because my husband's income isn't high enough on it's own for us to rent - ironically, I get more in invidiual income via my student loan than he does in salary. But if my income is on Student Loans is included then we are earning more than enough (2.5 more than rent).

My mum is more than willing to be our guarantor but my major concern is she has an discharged IVA on her file (It ended 3 years ago). She has all the certification to state it is over and she paid everything back but does this make her ineleigible to be our guarator? She satisfies the other elements of the requirements - earns 3x more income, homeowner, full time employment.

I suppose it is likely to be decision on the letting agency and I will ask on Tuesday. But in the meanwhils, is there anyone that could shed a bit of light on this?

Pixie5740

Letting agents can only check your public credit files and public credit files show CCJ and insolvency. Therefore, if the letting agent checks your mother's credit file her IVA will show up. As to whether that would put the landlord off is anyone's guess. If the landlord had a choice between you and a tenant who didn't need a guarantor at all I wouldn't fancy your chances. Likewise I wouldn't fancy your chances if the landlord has a choice between you and someone with a guarantor who doesn't have insolvency recorded on their public records. There ain't nowt as queer as folk though.

novotose

So in theory, if the letting agency accept my income as actual guaranteed income (which it is, as the next year has been confirmed), then I'd be able to push through an application on mine and my husband's income without a guarantor.

This is so frustrating.

G_M

novotose wrote: »

For the last five years, we have been privately renting in a situation that has been blissfully free of Estate Agents. However, we now need to move and as we can't find anything without agent involvement we are heading back to that heady world of credit checks and administration fees (yay!!)
Most sensible landlords do credit checks anyway. You've been lucky!

Due to my status as a Full Time Student, the letting agency has suggested I might need to have guarantor....

My mum is more than willing to be our guarantor but my major concern is she has an discharged IVA on her file....

I suppose it is likely to be decision on the letting agency and I will ask on Tuesday. But in the meanwhils, is there anyone that could shed a bit of light on this?

It depends on the landlord.
He may have delegated all his decision-making to the agent, or he may have instructed the agent to find one or more potential tenants from whom he'll make his own decision.

If the former, then the agent's policy is what matters.
If the latter, then the landlord's opinion is what matters.

If the LL feels your income (sole or combined) is enough to give him confidence you'll be able to afford the rent, then fine.

If not, and he wants a guarantor, he's going to want someone he can rely on to pick up any arrears/costs. So the guarantor's income matters. He may be put off by the discharged IVA, he may not.

It may also depend who else applies: if no one else applies, he may overlook the IVA. If someone with a high income, no IVA/CCJ etc also applies, he's more likely to let to them than you.

Cakeguts

It isn't just the IVA. Some landlords don't let to students. It is a risk because your income is from student loans and there is an end to your income in plain sight.

novotose

Cakeguts wrote: »

It isn't just the IVA. Some landlords don't let to students. It is a risk because your income is from student loans and there is an end to your income in plain sight.

I get that completely.

Thankfully, as a mature student, I do have a full time employed husband but his income doesn't cover the 2.5 more than rent requirement even with our Child Tax Credits (which are counted as income).

I'm trying to source a back up guarantor. I'm hopeful my step dad or aunt will act as guarantor if my mum can't.

At this point, I wish I could just upfront six months rent and be done with it.

System

novotose wrote: »

At this point, I wish I could just upfront six months rent and be done with it.

Have you proposed that to them? Might be worth a try.

novotose

They said that would be accepted, but I don't have that sort of money floating around. I have enough for six week deposit and first month rent, and then it's gone. We had hoped to have a bit more time because I'm in the middle of a court battle with my local NHS trust.

This situation has come as a bit of a shock to us. We're being served a Section 21 as the landlords have decided they want to renovate the place and sell up because maintenance costs for them are going up and up. Not that I mind. I don't mind the push to be out of the place to be honest. Between the four (Me DH and DC) of us we have grown out it.

It's just this matter of guarantor. I'm going to see what they say. I've had all of next academic year's loans confirmed, so I have the confirmation that this money is coming to me. I have confirmation that I have money now. It's just frustrating.

xylophone

I wish I could just upfront six months rent and be done with it.

Borrow from mum/aunt/ stepdad?

novotose

xylophone wrote: »

Borrow from mum/aunt/ stepdad?

Sadly, no one in my family is cash rich enough for that. I'm the only one my family with sense when it comes to saving, but after me and DH got married and paid for a holiday, we're a bit low on our additional funds as well.

As I say, this has been massively unexpected and our slush fund hasn't been fully replensihed yet!

notmyrealusername

Going on the dates given her credit files would be totally clear of any issues aso any landlord/lettings agent would be none the wiser.

The IVA is removed six years from the START date of the IVA, so if it ran for the full five years and ended 3 years ago it would no longer be on her credit files, or the insolvency register.

She might need to check there are no incorrectly dated defaults showing, the defaults cannot be after her IVA started so again if everything ran as it should and she's not defaulted since the IVA then her credit files will be sparkly clean. If there are wrongly dated defaults this is very easily fixed by contacting the companies concerned, although the debts will likely have been sold on to a debt recovery company so you jsut contact them instead.