First Time Renter

harlowjean

Hello!
I am finally working full time (I have been for three months) and I am finally in a position where I can move out of a horrible situation. I'm very excited but also very scared. I have paid the holding deposit and I am waiting for the referencing to come back, the company is Let Alliance. I'm really worried I won't pass it for some reason? I don't have bankruptcies or IVA's or CCJ's but I'm scared about all the other stuff they check. I've never rented before so I'm worried about how that makes me look, though I have been paying rent every month to my mum, the same amount since I was working my part time job and it's always on time, though I know that probably doesn't count.

Does anybody have any experience with this company or even renting for the first time and going through the referencing? I really need to move out so I'm..... really nervous.

Thank you and sorry if this is a jumble, I am having a hard time trying to calm myself down lmao

Comms69

What other stuff do you think they check, because you've listed the extent of the credit checks already

greatcrested

They might want to verify your income to see it's enough to pay for the rent, and they might want confrmation your job is not temp.

As a fall-back, would your mum act as guarantor if necessary? It's a big commitment (for her) as she'd be liable for any debts you incur.

harlowjean

Comms69 said:

What other stuff do you think they check, because you've listed the extent of the credit checks already

I don't know, I think I'm just overreacting! I do have a Klarna account, so I guess I'm worried that's going to show up?

harlowjean

greatcrested said:

They might want to verify your income to see it's enough to pay for the rent, and they might want confrmation your job is not temp.

As a fall-back, would your mum act as guarantor if necessary? It's a big commitment (for her) as she'd be liable for any debts you incur.

Job is not temporary so that should be okay, I also did the calculation on several rent calculators and did the 2.5 x thing and since the rent is 550 a month and I get 17,080 a year, I can afford it I believe!

My mum couldn't as she is not only in a massive amount of debt and currently paying Step Change and her credit history is... bad! I was thinking of using a service as a last resort, but I'm not sure if it's a smart move?

Hasbeen

harlowjean said:

greatcrested said:

They might want to verify your income to see it's enough to pay for the rent, and they might want confrmation your job is not temp.

As a fall-back, would your mum act as guarantor if necessary? It's a big commitment (for her) as she'd be liable for any debts you incur.

Job is not temporary so that should be okay, I also did the calculation on several rent calculators and did the 2.5 x thing and since the rent is 550 a month and I get 17,080 a year, I can afford it I believe!

My mum couldn't as she is not only in a massive amount of debt and currently paying Step Change and her credit history is... bad! I was thinking of using a service as a last resort, but I'm not sure if it's a smart move?

I would assume? quite a few landlords would want some sort of guarantor, especially at this time? 

If asked for is there anyone else?

[Deleted User]

I think there is an affordability issue in there unless bills are included in your rent. 550 + bills off that salary is not a good ratio.
Ask the landlord if you will require a guarantor based on a calculation of your rent vs salary.

harlowjean

brett19852010 said:

I think there is an affordability issue in there unless bills are included in your rent. 550 + bills off that salary is not a good ratio.
Ask the landlord if you will require a guarantor based on a calculation of your rent vs salary.

I have asked, it's a company and he said that we can look into it if there are any issues but I don't really have a good relationship with my family and don't have anyone I can ask to be a guarantor so I guess we'll see. I had my doubts anyway lol

Sncjw

Have you factored in your bills 

gas/electric
tv licence
any cable or sky
water rates 
insurance 

food
travel

can you afford it 

greatcrested

harlowjean said:

greatcrested said:

They might want to verify your income to see it's enough to pay for the rent, and they might want confrmation your job is not temp.

As a fall-back, would your mum act as guarantor if necessary? It's a big commitment (for her) as she'd be liable for any debts you incur.

! I was thinking of using a service as a last resort, but I'm not sure if it's a smart move?

Can't comment as I've no idea what you mean.....

d2446679

harlowjean said:

Comms69 said:

What other stuff do you think they check, because you've listed the extent of the credit checks already

I don't know, I think I'm just overreacting! I do have a Klarna account, so I guess I'm worried that's going to show up?

https://www.klarna.com/uk/blog/does-klarna-impact-my-credit-score/
From their site: 

Does Klarna impact my credit score?
..
Klarna’s ‘Pay later’ products are ‘Pay 30 days later’ and ‘Instalments’ (formerly ‘Pay in 3’) which have no interest or fees, ever. These two products are Klarna UK’s most widely used and are exempt from a regulatory point of view, whereby consumers do not enter into a regulated credit agreement with Klarna.
...
To use ‘Pay 30 days later’ or ‘Instalments’, a soft credit check is undertaken by Klarna on the customer. This does not leave a record on their credit file that will either impact the customer’s credit score or is visible to other lenders. For a customer’s credit file to be impacted, a lender would have to submit missed payment information to the credit reference agency (CRA). Klarna does not report missed payments to the CRA in relation to these products. It is therefore not accurate to say that “Klarna’s ‘Pay later’ schemes damaging millions of shoppers’ credit scores”. To date, a customer’s credit score has not been impacted by using Klarna’s ‘Pay later’ products even if they have failed to pay on time.

I can totally understand feeling anxious about the credit checks for renting as I've been there!

It was a few years ago now, but for the income affordability bit the figure I heard was income (joint if you are more than one person) should be 40x the rent... for example if the rent is £500 a month then your (joint) income needs to be £20,000. Not sure if that applies any more but it seems sensibly in proportion. (Also it's a very broad way of calculating that doesn't take into account individual circumstances, but these 'agencies' are often quite criteria driven like that.)

Do you have the option to offer a number of months rent up front (don't volunteer this at first!) as a fallback option?