A worry that's just occured to me :(

Scarlett.1974

We're hoping to move into a rented house in January, do a voluntary repossession of our house and go BR in February.

With our less than squeaky clean credit history we will need to pay 6 months rent in advance. Now, we can't save that much in a couple of month, not with needed additional funds for the BR, deposit and bond and moving costs. So, my parents were going to lend us the 6 months rent money and we were going to pay them back at the monthly rental amount for 6 months, then continue paying the rent. Does that make sense?

Anyway, a worry that has just occured to me is this: would the OR be okay with this? Or would he/she see us paying back my parents at £xxx per month as "preferential" treatment and say that the surplus we have for those 6 months (with not having to pay rent) should go into any IPA that is imposed? Because if that was the case, then I couldn't take my parents' money, it's practically every penny they have

I'm tying myself up in knots here. Can anyone advise? I don't think I could be less than truthful with the OR about this (even if I wanted to, which I don't) because there will surely be a paper trail for this money on bank statements and also it might be mentioned in our tenancy agreement, which I read somewhere that the OR can ask to see.

Thanks in advance.

Scarlett xx

backontheup

Or you could just put it down on your monthly SOA as 'rent'. Which effectively it is.

betterlatethannever

Thats a good question, but the OR should see it that you have to have somewhere to live and this is the only way, so it shouldn't be a problem. Really your just paying rent, not paying a creditor.
If your lucky, some places will accept just a guarentor, so maybe try that first and see if your parents are willing to act as guarentor.
Not 100% sure if i'm right on the above, so i'll leave it open for others to jump in please, but i'm pretty sure i'm right!!

betterlatethannever

backontheup wrote: »

Or you could just put it down on your monthly SOA as 'rent'. Which effectively it is.

You managed to put in one line what it took me 7 or so to write:p
I really must learn brevity:rolleyes:

Scarlett.1974

Thank you both

So, I wouldn't be 'lying' then if I put that amount on the SOA as rent then? Which IS what I had planned to do, but then had this huge wobble just now and got all worried.

BLTN - most of the EAs around here ARE happy to accept a guarantor instead of the 6 months rent. But (there's always a 'but' isn't there?!), the person being the guarantor needs to be earning 3 x the monthly rent (and must be able to prove this) and both of my parents are retired and just have very small pensions, so that was a no-go unfortunately.

backontheup

betterlatethannever wrote: »

I really must learn brevity:rolleyes:

yes











(I have flu at the moment. My poor little fingers ache if I type too much)

betterlatethannever

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl:
Hope you feel better soon, then you can waffle on, just like me!:p