Any advice greatly appreciated!

TessB

Hi guys,

I'm a graduate who is just attempting to move out of home and into a rented flat.

After flat hunting for what seems like forever myself and a friend have finally found somewhere we'd like to call home. The only problem is, the huge amounts of deposit and fees I am expected to come up with in order to secure it! Originally I was going to be renting a room from my friend in the flat she was buying with her parents, however the sale fell through and we have decided to rent a place instead.

I built up about £2,000 on a credit card in my univerity years and couldn't meet the monthly repayments until I graduated and started work, which lead to a CCJ. I have almost paid this off, thankfully, but I know that the lettings agent is going to do a credit check as part of my application.

I have told the lettings agent about the CCJ and said I no longer have any credit cards etc but they have said I will most likely need a guarantor, which I can completely understand, as my friend does not earn enough to cover the rent on the whole flat. I don't think my parents will be suitable, as they have both retired. I think my aunt may be prepared to act as my guarantor, but what exactly does this mean? And are there any alternatives?

I have no problem with paying the rent, my share will be £600 pm on an annual salary of £23,000. The deposit is also fine, it's just the agent fees on top and the security deposit, which I hadn't planned for as I was going to be contributing towards my friends mortgage originally.

I can't ask my parents or any other family members for financial help, and am hoping someone may have an alternative suggestion? I've heard about ABC's and credit unions but not exactly sure what they are or how I would go about applying, or if it's even worth it? I would only need about £600 for a month, until I can repay it, but I don't think my bank will be willing to lend it or extend my overdraft because of my credit rating.

Any ideas or suggestions would be really helpful, I can see that some of you are experts!

Many thanks,

T x

PasturesNew

Earning £23k you're taking home over £1400/month, which is a good salary.
Can you not just wait/save 2 months?

How much do you need?

I've no idea where you're looking to rent, but £1200/month between you seems a lot. Have you really looked round for something that gives value for money and is still commutable?

pinkshoes

That's a lot of rent for quite a small salary (presuming it's London).

Could you not rent something cheaper?

A guarantor just means that if you fail to pay the rent, then the guarantor will be responsible for paying it on your behalf.

Why not live at home for a few more months, as you should be able to save loads if your parents don't charge you rent!

obsessed_saver

Deposits are usually a month's rent, and at most, 1.5 month's rent.

A guarantor is someone the letting agent/landlord can legally pursue if you (or your flatmate) fail to pay the rent. You might want to make the clarification that your guarantor will only be responsible for your half of the rent, and make sure this is stated on the guarantor agreement/form.

As PasturesNew pointed out, you might want to stay home and save for a couple months before moving out. Getting a bridging loan (for a month) would be difficult and very expensive as they'll charge a very high interest rate.

TessB

Thanks for all the help, I'm actually working in London now and my parents live about two hours commute away. I moved down to stay with my friend and her parents on a short term basis until out flat got sorted out, and then it fell through!

Now I have a new job down here, and commuting from my parents' would cost me more than the extra rent!

The flat is in London, and we have looked around but can't find anything cheaper that's close to transport links and we feel secure in.

London is a minefield, and I'm sure if we were house sharing it would be cheaper, but things haven't really gone to plan.

I think I'm going to have to bite the bullet and pay the deposit etc and live off baked beans for a month or two! x

obsessed_saver

Looked on Gumtree for house share in London?

http://www.gumtree.com/

neverdespairgirl

TessB wrote: »

The flat is in London, and we have looked around but can't find anything cheaper that's close to transport links and we feel secure in.

London is a minefield, and I'm sure if we were house sharing it would be cheaper, but things haven't really gone to plan.

Hi Tessa - where in London are you both working? And where are you renting? £1.2k a month does sound like quite a lot.

I'd look at Blackheath, depending on where you are working. It's a nice area, and a flat within a short walk of Blackheath station would cost a lot less, for example:

http://www.rightmove.co.uk/viewdetails-10284351.rsp?pa_n=1&tr_t=rent

http://www.rightmove.co.uk/viewdetails-6672115.rsp?pa_n=1&tr_t=rent