Trying to rent a house when you have a bad credit rating - how? Desperate!

blue_monkey_2

Hi all,

We have had some news that mum is selling her house and this will leave us (hubby, wife and 2 kids of 3 and 4) homeless when she sells it as we rent it off of her. I have been to the council today as we have been on the waiting list for 8 years and they have told us that our best bet is to rent privately and we will get help with HB which is fine. So I started looking around and I called one office that had a house in our 'price range' for a deposit and asked what I do etc... as I've never had to do any of this before and they told me that they would do this that and the other and run a credit check. And this is where we will fall down. We have run our bank accounts OK and have paid things like utilities, mobile bills, etc... on time, we have never been over our overdraft limit and rarely use it but we do have other debts that we are paying off on a personally managed repayment plan (all creditors are happy with this) and they then told me that no landlord will touch us as they have to take an insurance policy and if we do not get an A we will not get the property. They also told us that we would need to be earning £26k to rent a property at £750 a month - that also is :eek: as he does not earn that much money either and that is the very cheapest price I have found.

My hubby lost his job a few years back due to getting industrial asthma and as he was on JSA and now has to work outside of his trained field he is earning around 10k less than before. He has a claim going in for compensation for the IA and loss of wages which we hope will be enough to cover the debts and 'start afresh' so to speak and we don't spend too much time worrying about the debts we have for this reason, but he won't get anything for maybe a good few years yet so that does not help us for now and it is not something we have banked on or told our creditors about - he may get nothing, but we hope it will be something to pay some of them off and we have always focused on this, the creditors have been understanding, I thought things were going to well!! Also, because we have looked after this house for her and done lots of renovations she said she will give us some money when it sells. Now this could be 50k or £10 - I don't want her to give us an answer of how much it is as I feel like I am begging for money, but when we said we would move in and look after the house for her (a little bit has turned into 10 year) it has meant the difference of never being able to get our own place as the prices here are too high now and our wages too low and any money we have had had been ploughed into renovating this place (it was a shell when we moved in). I kind of think she sould give us enough money to get sorted out but then I feel bad for thinking I should rely on this. It is a hard situation, I am trying hard not to feel cross at my mum, there have been times in the past when we could have taken the opportunity and left but we have always stayed as if we had left the house she would have had it repossessed as she never had the money for it and that would have made me feel bad. now it is us that needs help and there is no-one to give it and that just makes me feel :mad: and at the same time. We don't have anyone else we can ask at all for financial help or with somewhere to live.

Her reason for selling is vague, no-one seems to know why, she took out a 10 year fixed rate in June just gone, we kind of assumed we would be here for the duration to be honest. This is why it has come as such a shock. All she has said when people have asked why is that 'she might lose it'. It does not make sense but it is clear that it is the time to move on.

Anyway, so now it seems that we cannot rent anything either, yet the council have told us that is our only option and to rent privately. So what do we do? I was doing OK before I decided to call them up and ask what the procedure was and now I am a bundle of nerves again - I've not slept for 2 days since she told us she was selling and worrying about stupid things, I was worried about Xmas and not having anywhere to live but we have asked her to hold off until then and she has agreed to do this. I've tried looking for places in the local paper, Gumtree and on Loot but there is nothing around here. We can get past Xmas but what happens then?

Has anyone else been in this situation? The council have said HB will top up our money to pay the rent and CT, but how is it some people (and I do know some) can rent houses via estate agents while having bad debts but we get refused. I am terrified of us all being homeless - the council have told me that if we have nowhere at all, one room in a hostel is £170 a week :eek: I am not sure if they were saying this to scare me into getting a private property, I'll do what I have to do and I'll take it if I need to but I don't see any other options out there right now other than getting to the point of my mum handing over the house, shoving everything into storage and going to a Travelodge - at least we will be able to get £10 a night rooms and our own bathroom, LOL. Maybe we'll even get their 'complimentary breakfast for £4' (I've never forgotten this from our last TL experience!!).

The thing I don't get is that people often go into rented places as they have fallen behind on their mortgages and have to sell their houses or they get evicted so where do these people go? I am find the whole situation very stressful and confusing BUT I am trying to think for tomorrow and not for what is going to happen in January but it is hard, I am trying to get it into my head that it could well be a good 4 months yet, but that does not help my head right now and I thought I would ask you guys for advice.

Can someone give me a push in the right direction as to what I do, I am so sorry this is ling winded and also where I go, I thought this might be the best place to ask. Thank you.

floss2

Ok, can you get a letter from your mum (as Land Lady) stating that the house is up for sale. When she has a buyer for the house, then go to the Council & ask to make a Homeless appointment - once within 28 days of the completion date, they will then have an obligation to declare you "Homeless" because of you being responsible for your children, and should then find you some accomodation.

Meantime, check with the Housing Department & ask if your rating will change because your rented home is up for sale. Then apply to all the local housing associations.

Keep trying the local letting agents - you may be lucky & find one who is nice to normal people who may have a few debts. Don't take the word of the one you have tried as gospel - again, the Homeless department may be able to help you there - ask about Rent-Bond schemes, also if they know any agencies/landlords who will take people in your situation.

Good luck!

blue_monkey_2

Thanks floss, I forgot to say, I did take the letter from my mum in today and the lady was really nice and explained everything. I am trying to keep a brave face on in front of everyone here and I just burst into tears again. I kind of think they might be trying to put me off having council accomodation - I was washing up and thought I should also try the housing assossiations, I thought that the council got houses from them and so I would be registered with both but no harm in trying is there. I'll do that tomorrow, I have to get my daughter from school and then it is open evening so I have to get them dinner.

They told me when the house had a completion date (I think this is right) then I could go back to them if I had not found anything within 28 days and this is when she said about the hostel.

Thanks for your help, it is such a minefield, just trying to find ones who alow kids, most say no pets but someone has told me that you can get cats fostered so I have to find out about this as well.

floss2

They may mention hostels to try & put you off - but they have a legal obligation to find you accomodation.

You may be able to register with Housing Associations on the internet....

Cats Protection often help to foster cats or temporarily house them (but may charge for that)....or maybe a friendly neighbour or friend? Alternatively, try your vets - they may know someone who can help.

Coolmum66

Hi Blue

Don't know if this would be any help, but do you have anybody that could stand as a guarantor for you?

I didi this for the past year and paid my rent by so to the lettingagent. They have just renewed my lease - and didn't ask for a guarantor this time around.

Hope this helps

Coolmum. x

blue_monkey_2

Hi Coolmum,

No, we don't really have any family that could do this, our family is not that close to be honest, and you can't really ask friends stuff like that. That is why it is so hard as we are on our own. Obviously there is mum but as she is selling the house we dont want to ask her.

I spoke to someone who works for the HA yesterday (a friend) and she said the best way is to wait the 28 days before the house is due to be sold and present as a homeless case, because we have children they have a legal obligation to house us, even in a hostel (which I am prepared for to be honest), but they will try and make us get somewhere ourselves so that they do not have to and then we are another family that they do not have to worry about. I have given up worrying about it until after Xmas when she goes to the Estate Agents - then I'll get concerned but it was a disappointment to find that the Letting Agents would not touch us a) because of the debts and 2) even if my husband got his compensation to clear them that we did not even earn enough money to rent a house for just £750 a month. And that was a cheap one, a 3 bed for £750, they are usually around £1100 around here. So just very disappointing. I guess it has been a hard shock coming in the 'real world'.