Renting with adverse credit - paying upfront

(31 Posts)
whoopsididit Wed 04-May-16 16:22:32

We have adverse credit from money problems a few years ago. We're looking to rent a larger house - we've found one we like. If we're prepared to pay 12 months rent up front should the credit still affect our chances ?

TIA

Sunnyshores Wed 04-May-16 17:06:32

Any decent landlord or letting agent will insist on getting you credit and identity checked, they have to - and for your protection you should only use a decent Agent - so your money problems will show up, whether you pay money in advance or not.

Your best bet is to be completely honest about what happened, how you can afford to pay the rent you pay now and how you can afford the extra that this new place costs.

Meet the landlord, be on time, dress smartly, create a good impression, get all your paperwork, references in order, have no other 'issues' , a home owning guarantor may be needed.

To be honest, you may not be ideal, but you can certainly make yourself a better bet than others who just wont bother or even make an effort to hand forms in on time etc.

specialsubject Wed 04-May-16 18:15:39

(posting partly to piss off the person that doesn't like me posting)

what Sunnyshores said. We all make mistakes, but if your previous problems have now been solved then that is something to flag up.

I'd be a little careful about 12 months upfront - the usual first contract is for six months so suggest matching that. Also check where the money is going, especially if there is an agent. I have a tenant who pays six months in advance, the money goes to the agent and is drip fed to me a month at a time. I checked that the money was ringfenced if the agent went bust. Don't know if the tenant did but I suggest that you do!

Sunnyshores Wed 04-May-16 18:23:06

Ohh special have i missed a landlord bashing thread!!

firesidechat Wed 04-May-16 18:24:44

I asked this question on behalf of my daughter a year or so ago. I was told by a surprising number of people that they will think she wants to grow cannabis or run a brothel. No idea if that is actually true.

OurBlanche Wed 04-May-16 18:29:14

Yes, sunny. Well, the OP wasn't, but pps responded to things she hadn't said and some of us (Special mostly) got larrupped smile

whoops talk to an agent, explain the situation, good ones will pass that info on to LLs. Many LLs would listen and make an informed choice. Any LA or LL who does not is probably not a good choice anyway!

Sunnyshores Wed 04-May-16 18:30:46

Landlords like nice, stable, boring tenants who will stay long term. Anyone with 12 months dosh is unusual, so I personally normally steer clear. It also means the tenant gets used to spending all their monthly income on things other than rent, so at the end of 12 months its a risk that they can then find the rent each month (unless they have more wads of cash ).

specialsubject Wed 04-May-16 18:45:40

sunnyshores yes - there's a cracker on chat (I think) about landlords and children. The toys are flying out of the pram with great force.

My opinions are apparently not valid because I only have one property and post a lot on threads about rental. I shouldn't be posting at all, it seems.

As usual I have asked the sweetybumps concerned for rational explanation. I am expecting a response at about the time we hit the Andromeda galaxy head-on.

whoopsididit Wed 04-May-16 18:47:45

Sunnyshores- it's a fixed 12 month tenancy so wouldn't be renewing after the prepaid period had passed

Hmm food for thought everyone thank you - I was honest with letting agent said that our lives had changed substantially in the last few years and our credit file is not good so to add peace of mind we would be prepared to pay in advance. It's quite an expensive house I think brothel or cannabis growing would be better business idea in a cheaper place !

specialsubject Wed 04-May-16 18:47:58

back to the point; people can fail credit checks for many good reasons, being self-employed is one. You therefore have an irregular income but could well have a big pile of cash.

it doesn't necessarily indicate that you will start what I believe is known as a grow-house.

whoopsididit Wed 04-May-16 18:51:12

With a tenancy credit check is it just pass or fail or do they get full access to file ?

Agent asked what we both did for living and we both have responsible, respected careers. My husband is a locum which may bring its own problems as he's a limited company.

We have the wad of cash to pay upfront as we've been saving hard since our prospects changed 2 years ago.

We own a property that we're going to rent out for a year and then sell and buy.

Sunnyshores Wed 04-May-16 20:03:24

Thank you special that does sound rather inviting - normally I would rush over to defend your honour, but unfortunately Im a bit busy counting my own wads wink moving house.

Credit check is a pass or fail, but I think Ive been given a reason ie didnt earn enough or CCJs but certainly not full access. TBH you sound as if you're trying to hide something, your best bet really is honesty. I have given many people a chance, most have been worth it. But I couldnt forgive deceit.

Jeremysfavouriteaunt Wed 04-May-16 20:35:07

Sorry special I hid the thread. Just briefly, you are very aggressive to people on subjects about renting. You post about 'landlord haters' and 'bile' on every thread and you are not always correct on 'advice' that you give.

It worries me that you set yourself up as some sort of expert on landlord/tenant law. I noticed that you were dragging it across lots of threads tonight but I can't unhide the thread.
Certainly when you first joined mumsnet, you were claiming that landlords could access with 24hrs notice etc. I notice that you don't say that anymore.
You were claiming that all HMOs needed licensing on another thread and I corrected you there.
I have been here for 13 years and always get uncomfortable when people set themselves up to be experts that other posters take as always being correct.
Lastly, I think you have been really rude to lots of posters.

Hope that explains it, I wasn't ignoring you on the other thread, I always hide ones when people are being particularly nasty.

specialsubject Wed 04-May-16 21:08:38

you corrected me and I accepted the correction with apologies for my mistake. Your problem with that is....?

I don't recall saying that landlords could access with 24 hours notice, that's not right. I've never expected to do that and always known I couldn't. The England/Wales law is that the 24 hours is the minimum requestable notice - but it is NOT a guarantee of access except in a real emergency. Fixes are not an emergency even if prebooked. You know all this of course.

I try very hard to be an expert in my business. Like you do if you need to earn money. My business is not HMO BTW.

I don't see why I should put up with the shrieks of 'all landlords are bastards', 'renting is so shit in the UK', 'landlords can do anything they like' and all the other foolish claptrap that is spewed about. None of these statements are true. So I say that.

facts aren't rude. I state facts. That's not rude. I can't be bothered smoothing the feathers of sensitive little fairies who spout the kind of falsehoods in the above paragraph.

Sorry, didn't know there was a time-served thing on mumsnet and that newbies matter less.

you are entitled to your opinions and so am I. We are also both entitled not to like other opinions. Neither of us are entitled to tell anyone else to stop posting.

gunting Wed 04-May-16 21:11:55

OP do you have any CCJs or bankruptcy etc?

My credit score is shit (450) and I passed the credit check with no problems for my house. Only lenders can see your full credit score, landlords can see any public records like CCJs and bankruptcy.

I used check my file a website online and it gives you 3 credit scores; one being the score that lenders see(mine was 450) and a score that landlords see (780).

whoopsididit Wed 04-May-16 21:11:57

I don't have anything to hide - I've told the letting agent we have had credit problems. Asked about the availability of full file to landlord as it's embarrassing !

whoopsididit Wed 04-May-16 21:49:35

No bankruptcy but do have a ccj that has been paid

SauvignonPlonker Thu 05-May-16 08:53:00

That will definitely show up in even if the most basic credit checks.

Your best bet is to be up front about this, with the agent, before the credit check stage. An honest approach will go down better rather than being "found out". Some agencies will automatically reject those who fail credit checks, or not offer rent guarantee to LL, or request a guarantor.

If you have 6-12 months of bank statements, demonstrating that you have paid rent in your current property, and that your income exceeds your outgoings, you stand a better chance. And perhaps evidence that your CCJ is paid off.

KittyKrap Thu 05-May-16 09:18:30

I had a shocking credit record due to my XH but amazingly passed the rental agency credit report.

gunting Thu 05-May-16 19:46:56

The CCJ will be visible to the landlord so definitely be upfront about it. Best of luck smile

whoopsididit Sat 07-May-16 19:19:58

Ok .... This is the update !

Have negotiated a monthly price that were both happy with. Have been upfront about credit problems and offered payment upfront.

Letting agent has reassured me it will be fine. They are expecting us to fail credit check but aren't worried because of upfront payment and our references, employment and bank account are all excellent.

We paid the holding fee / reference fee today

I signed up to experian today (the credit reference agency they use)

Both mine and husbands credit score is 'fair' (798 and 734)

My husband has no CJJ's, I have 2.

The defaulted accounts are on there, majority of them satisfied.

The positives on the file are that our bank accounts are all in perfect order, the mortgage is on there with proof of no missed payments, mobile contracts have no missed payments, we haven't got repeated credit searches, months since an account has been defaulted is 72.

We're both on electoral roll

Can I get excited or could it all still fall apart?

whoopsididit Sat 07-May-16 20:45:12

Anyone?

whoopsididit Sun 08-May-16 18:28:29

Come on Mumsnet landlords ! X

GETTINGLIKEMYMOTHER Mon 09-May-16 11:29:15

Daughter of a colleague paid 12 months up front and negotiated a slightly reduced rent in consequence.

Downside was, she had no leverage if anything needed doing. Was left with no functioning washing machine for several weeks. OK, letting agent was useless and the LL (living abroad) was just plain Queen-Midas tight. But it was a real headache for her - she could not threaten to withhold rent, or get it fixed herself and deduct the cost.

gunting Mon 09-May-16 17:01:37

Legally you can't threaten to withhold rent anyway or get someone round and deduct the cost from the rent.

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