Rental help please

[Deleted User]

Can anybody help me with this question please.
I am on benefits and have rented successfully for the past few years, but need to move again, trouble is my bank account is nearly £500 overdrawn. I have never missed any bill or rent payments. Will a future letting agent ask to see my bank statements, or will they just need to see income from my benefits statements? I do have a guarantor as well,  I am so worried as I have no option to leave where I am soon and I am worried I will get refused as it might look like I am in financially difficulties because of the overdraft. 
Thankyou

freesha

Yes, they might well do, as well as running credit checks - this will obviously show on both. Can you open up a new bank account elsewhere, so your income isn't swallowed up with the overdraft, and pay back so much per month towards the old account?

Albermarle

freesha said:

Yes, they might well do, as well as running credit checks - this will obviously show on both. Can you open up a new bank account elsewhere, so your income isn't swallowed up with the overdraft, and pay back so much per month towards the old account?

If you had an agreed overdraft, are you sure that would show up on credit checks?

theartfullodger

Yes, amazingly different agents different process.  ust be open & honest.

Good luck & best wishes.

dinosaur66

you will have a credit check so your credit rating will be important how letting agent views you as possible tenant

depends where you are in the country

i think the LHA is approx £600 month for a 1 bed nearly all over the country which IMO is generous so many pockets where your credit rating will not be a factor as long as the flat rental is £ 500 to £550 a month and govt covers it.

if you are looking at areas where a 1 bed flat is £700 plus then you will imo not be considered as a viable tenant as there is a rapidly shrinking ammount of private propertys being rented and landlords can pick and chose at least in the areas i know between over 20 applicants

another factor is landlords who rent flats and not houses are more and more likely to be big time 30 plus property  portfolios and are much harder nose /rent increases every year /maximise profit than small time landlords 

Myci85

Are you renting through an agent now? If so, it might be worth looking to rent through the same ones again if you have a good record of paying on time. 
Back when I worked in a letting agent very few landlords would accept housing benefits, and you had to be earning 3 times the monthly rent of a property so the landlord could qualify for rent guarantee. I'm not sure if that is still the case. 

[Deleted User]

freesha said:

Yes, they might well do, as well as running credit checks - this will obviously show on both. Can you open up a new bank account elsewhere, so your income isn't swallowed up with the overdraft, and pay back so much per month towards the old account?

I have got another current account with the same bank which I don't really use I suppose I could 

[Deleted User]

Albermarle said:

freesha said:

Yes, they might well do, as well as running credit checks - this will obviously show on both. Can you open up a new bank account elsewhere, so your income isn't swallowed up with the overdraft, and pay back so much per month towards the old account?

If you had an agreed overdraft, are you sure that would show up on credit checks?

It is odd as doesn't show up on my moneysupermarket credit score.

[Deleted User]

Myci85 said:

Are you renting through an agent now? If so, it might be worth looking to rent through the same ones again if you have a good record of paying on time. 
Back when I worked in a letting agent very few landlords would accept housing benefits, and you had to be earning 3 times the monthly rent of a property so the landlord could qualify for rent guarantee. I'm not sure if that is still the case. 

I did rent through an agent with this flat, although it is private rental, I could get a letter from my landlord as have never missed a rental payment.

[Deleted User]

freesha said:

Yes, they might well do, as well as running credit checks - this will obviously show on both. Can you open up a new bank account elsewhere, so your income isn't swallowed up with the overdraft, and pay back so much per month towards the old account?

My credit check says I have no overdraft on moneysupermarket which is odd and my report shows no defaults etc

[Deleted User]

dinosaur66 said:

you will have a credit check so your credit rating will be important how letting agent views you as possible tenant

depends where you are in the country

i think the LHA is approx £600 month for a 1 bed nearly all over the country which IMO is generous so many pockets where your credit rating will not be a factor as long as the flat rental is £ 500 to £550 a month and govt covers it.

if you are looking at areas where a 1 bed flat is £700 plus then you will imo not be considered as a viable tenant as there is a rapidly shrinking ammount of private propertys being rented and landlords can pick and chose at least in the areas i know between over 20 applicants

another factor is landlords who rent flats and not houses are more and more likely to be big time 30 plus property  portfolios and are much harder nose /rent increases every year /maximise profit than small time landlords 

I am paying £900 a month at the moment with a private landlord but orignally it was advertised through letting agent.