Renting with an IVA

rambo26

I have recently seperated from my wife and moved out of the family home and back in with my parents. I've said that she and the kids can stay in the house so not to disrupt the kids in these already hard times and i will rent a somewhere.
I went into an IVA in October 2019 to help sort our financial situation which she mainly got us into (hence why we ended up seperating).
Im now worried that i'm not going to be able to rent somewhere because of the credit checks. I can easily afford to pay everything as i'm on a good salary. But due to being in an IVA will this be a problem or are there ways around it?

mwarby

being in an IVA will result in landlord credit checks coming back as a fail. Some landlords if told upfront about the IVA will overlook this if nothing else comes back on the checks, a lot depends on the competition for rental properties, in a location where they can rent it out within hours, they are likely to pick so done who passes the checks with flying colors, if it takes weeks or months to let they will be less fussy

One way around the credit checks is to have a guarantor, but obviously this isn't open to all. Some landlords may also be swayed by a larger deposit, although this can be difficult in an IVA. You will also likey have better luck if you can deal with the landlord direct(at least you can get a good idea wether the landlord will accept you)

If you haven't talked to your IVA company already it's worth making sure that the costs of the properties you are looking at is affordable and that you won't need a variation meeting with creditors to approve the change (a possibility if the change means the IVA payment needs to drop)

liggerz87

I'm subject to a dro and mate is in an iva we had no problem with the estate agent we told them what happened they did credit check me was rent profile not sure of they did mate as above just tell the agency but I think there closed now because of the lockdown

sassy_one

Not all landlords do credit checks, find one who doesn't (most will advertise they intend to).

Fireflyaway

I was really worried about not passing the credit check to rent. I said this to the letting agent and they advised that in their case only bankruptcy would be an issue. If I had proof of income and a positive reference ( they contacted my mortgage company to check id paid on time) everything would be fine and it was. I know someone who was refused due to bankruptcy and he was given the option to pay a year up front or find a guarantor. There are ways and means, don't worry. 

rambo26

Fireflyaway said:

I was really worried about not passing the credit check to rent. I said this to the letting agent and they advised that in their case only bankruptcy would be an issue. If I had proof of income and a positive reference ( they contacted my mortgage company to check id paid on time) everything would be fine and it was. I know someone who was refused due to bankruptcy and he was given the option to pay a year up front or find a guarantor. There are ways and means, don't worry. 

Thats great cheers. I have a gaurantor if needs be and can prove my income even with the lockdown as i am still working due to being a key worker.

mwarby

Best of luck, hopefully you won’t need the gaurantor but definitely useful to have. Be upfront, and emphasise the positive that your still working and can afford the rent