Renting with defaults

[BellaLasagna]

Any advice welcome...

A couple of years age DH made redundant (company went bust) and my job 'conveniently' came to the end of fixed term contract when I was pregnant. We had no savings, no redundancy payment and basically went under.

The outcome being that we managed to hold onto the house but defaulted on 5 credit agreements (2 loans, 3 Credit cards).

Back on our feet now, but DH has just been offered an amazing opportunity in work but will mean a relocation. We can't sell the house - massive negative equity. Relocation to happen in March of next year, just at the same time that we will be making the final payments on our defaulted debts.

The question is - will we be able to rent? Don't agencies run credit checks and we will have our disasters on our records for another 6 years from March of next year.

Is it an impossible sitution?

Agencies do run credit checks.

You might be able to get a rental contract even with a poor credit history if you are able to pay all your rent up front ie six months at a time. I'm sorry that's not very helpful as it doesn't sound as though you'd be able to do this.

Have you tried talking to the CAB? There are organisations that lend money to people in your circumstances.

It is possible to rent when you have poor credit although paying six months rent in advance is often the way to get round it (that's what we did). You can also get a guarantor so if you default on payments they would pay instead - is there anyone who could do that for you?

Another possibility is renting through a private let rather than through an agency as there may be fewer credit checks there as well.

There are definitely ways round things - hope everything works out for you.

In a worst case scenario we would be able to borrow the money from DH's parents. We could have probably done this at the point when everything went tits up but DH would't evn entertain asking his DPs for help (or admitting that we had loans - anyway, that is another subject altogether!)

As we would be relocating closer to them I suspect that they would be willing to help - is that a standard rate - 6 months up front?

Is your DHs new company offering any help with relocation? If its not been mentioned he should probably check - given the negative equity its a reasonable question.

Most rental contracts are for six months, yes, so each time the contract was renewed you would pay another six months' worth.

6 months is often the standard length of initial contract and then it can be extended on a rolling basis (as long as you meet the income requirements for the rent you are needing to pay).

Will you be renting out your current house?

Yes - we will be renting ouut the current house, and the rental income will be the same as the mortgage, it's also a popular location so we should be ok.

I will have to give up current job and am planning to get another one to coincide with relocation which should be reasonably strightforward.

DH's earnings are roughly 2.5 x rental costs in new location, but there will be a month where I will be in a new job therefore unable to prove income straight away.

Does it sound plausible? TBH we're back on our feet now - our income going forward means that we have plently of scope for saving in the future. We just had a really bad blip.

To be honest I would just apply, and see what credit check comes back with. As a letting agent, I've been told about potential tenant's poor credit rating, and it's come back fine. They have not picked up on it.

If it comes back with issues, the letting agent will either flatly refuse you, or ask for more rent up front/ bigger deposit, and a guarantor.