Query about rentals and credit worthiness etc.-sort of

[Bumpetybumps]

Someone told me recently that their DD was refused a lease for a house on the basis that they failed the 'affordability' test ( set by the agent?). This was based on monthly rental being no more than x% of their salary. They would have been able to afford it quite easily but the agent ( or landlord) had created this scale of rent/earnings.

Is this so? What about someone who has low earnings but lots of savings ( eg £100K for argument's sake) , references and a good credit rating?

Yes this is true, a lot of agents use the affordability check. If someone has low earning but lots of savings they should show evidence of this to the agent and explain. We have had this before and tenant has paid 6 months up front.

The guideline my agent uses is that rental should be no more than 40% of income. Letting to a tenant who can't afford the rent creates huge expense for the landlord and doesn't really help the tenant either!

low earnings but big savings? pay in advance, job done. Both sides should ensure the money is ring fenced as the agent will drip feed it to the landlord.

Rentals are just crazy. We needed a guarantor to rent a house for £675 a months with a combined income of 35k. Checked our credit score, it was fine. My dad guarentored for us. 8 months later we bought our own house......mortgage went through fine.......