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Renting First Flat: Failed Credit Checks, advice?

8 replies

Ch0ccyButt0ns · 09/05/2021 11:51

Hello there,

Reading on from someone in a similar predicament to us, I thought I would post here.

My partner and I are wishing to rent our first flat together. We have found the perfect property, but demand is extremely high. The estate agents have said that 10 people will be making offers to the landlord. So we are doubtful that we will get it, but we wrote a letter to the landlord to explain why we would make good tenants, and to tell them about ourselves.

My partner is a US citizen, with the right to live and work here until 2025. I am a British Citizen.

We are both postgraduate students, with high paying jobs lined up for after the courses are complete. Our living costs and course fees are funded by our big name companies (finance).

As we live in a very expensive city, our income won't pass the credit check. The landlord told me this was 30x monthly rent. I asked if I could have a guarantor and she seemed fine with it, but said "of course I assume you have savings". I have enough money in the bank for two years rent for the entire place, before my maintenance grants come in from my firm.

On closer inspection of the application, it says that the guarantor has to earn 3.75 times the annual rent. As my dad is semi-retired he doesn't meet this figure. He owns his own home, and some other family properties. The same goes for my mum, she owns half of the family home, but also owns a smaller house in which a family member lives rent free. Together, their income is above the 3.75 times annual rent, but either on their own, fall just short of this. (Annual rent is £22,800 or £1900pcm, so individual salary would need to be £85,500!)

I spoke to my grandfather who also rents out a house or two, and he said 3.75 times for the guarantor is the highest he has come across. His estate agent uses the same formula as the tenant credit check. But it makes sense for it to be higher, as a guarantor would have their own living costs. It's annoying, as we definitely have the financial means, but because it is not on paper as income, then we would fail the credit checks.

My partner cannot use his parents as a guarantor as they live in the US.

This seems like a hurdle that might make the landlord pick another couple over us.

Is it possible for both of my parents to be guarantors?
Can I send a screenshot of my savings to show affordability?

We have told the landlord that we are willing to pay the full rent upfront. Is there anything else we can do?

OP posts:
Tinselandlights · 09/05/2021 12:04

I just can't imagine this is workable - they probably have 3x salary on all their contracts because they have some lower priced properties where 3x monthly salary for a guarantor is, say, £1500 so affordable.

If they query, just respond and say what you have said here. It's completely unreasonable to expect you to find someone who earns £85k before you can get a guarantor. We had this years ago where they asked to see my DH's bank statements which showed he was overdrawn, we were firm that we could afford the property and they did back down.

It sounds awful and if they don't agree, just look elsewhere. There are loads of more reasonable estate agents.

Ch0ccyButt0ns · 09/05/2021 12:42

@Tinselandlights

I just can't imagine this is workable - they probably have 3x salary on all their contracts because they have some lower priced properties where 3x monthly salary for a guarantor is, say, £1500 so affordable.

If they query, just respond and say what you have said here. It's completely unreasonable to expect you to find someone who earns £85k before you can get a guarantor. We had this years ago where they asked to see my DH's bank statements which showed he was overdrawn, we were firm that we could afford the property and they did back down.

It sounds awful and if they don't agree, just look elsewhere. There are loads of more reasonable estate agents.

Problem is that the rental market here is insanely competitive. Things go off market before a day of viewings etc.

I know an option would be to look for cheaper properties, but other estate agents I have spoken to, have no issue at all with the whole guarantor thing/would be happy for upfront payment. As we would be working from home, having a nice flat is really important. This flat is very well priced for what it is, and is about double the size of more modern flats.

I completely understand the concern for the landlord, but we are just an honest young professional couple trying to start out with our first home together.

I do have family members who earn more than 85k, but they live abroad, so would not be eligible to be our guarantor.

I get a sense the estate agent is more interested if they like the potential tenant.

OP posts:
Liliolla · 09/05/2021 13:01

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Changingwiththetimes · 09/05/2021 14:19

Can you offer to pay six months up front

Changingwiththetimes · 09/05/2021 14:22

Sorry posted too soon.
I had a flat, very nice two bedroom that rented for £1500/month. I almost exclusively rented it to foreign university students and none could pass a credit check so they paid six months up front and another six months up front when they renewed. This was through n agent and it was never a problem. They were always great tenants too.

Viviennemary · 09/05/2021 14:27

But basically you are both students not yet in full time employment. I agree with paying rent upfront.

dreamingbohemian · 09/05/2021 14:34

Surely the obvious answer is to go for a cheaper flat and then one of your parents can be a guarantor.

Two students with no kids do not need to pay 1900£/month even in London!

Rent something more reasonable now and then upgrade when you have your high paying jobs

ivykaty44 · 09/05/2021 14:38

offer 12 months rent up front, then put the rent away for 12 months and do the same next time, never had a landlord refuse

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