Hi,
I’m looking for advise, my current property is on sale in Luton. I’m a single mum of 2 and once the house is sold I will be looking for a 3 beds property to rent in the areas around Barton-Le-clay as my son goes to school here. Silso ect any areas around the A6 as far as wixams. My problem is I don’t have the best credit history but I will have a big chunk of money from the sale of my house. How likely am I to find a Landord that will take me on I’m willing to pay up to 1 years rent upfront to prove I’m secure ect. My house isn’t current sold but have started looking as don’t want to me left with no where to go. I had an IVA in October 22 but paid it off early and will be off my credit file in May 27. I have looked into a single mortgage but eveyone has said wait till next year so I will just hopefully only need to rent until I can secure a mortgage again.
@Coral2
Your affordability assessment will depend not just on your savings but your income. And then what rent is wanted by the LL compared to what you can afford. If you offer the right amount and have a stable income you’ll have a chance just like any other prospective tenant. It’ll help if you have a guarantor and can show a history of paying the mortgage (or previously rent) on time. Make sure any CCJs have been set aside if you can.
Under RRA the landlord can’t request or encourage the payment in advance (nothing more than 1 month rent between contract signing.and move in date). They can only accept it if it’s voluntary. So they can’t rely on it and it’s not a lot of use to them.
Good luck
Ok thank you I do work part time but will my savings be included as I will be able to pay rent long term going forward ?
@Coral2
Well it depends on the LL and whatever affordability criteria they use. The companies doing affordability/referencing reports like OpenRent don’t publish their exact criteria for obvious reasons. But when I’ve talked to agents in the past they’ve certainly suggested savings get taken into account.
Good luck
COnsidering your situation, I wouldn’t include your savings at all if I was your prospective LL. The only savings I’d take into account would be those that you’d accrued over time by actually saving money rather than spending it because that would show financial discipline and that you live well within your means.
In your case, because the savings have come as a lump sum from a house sale, I would look exclusively at your earnings to calcuate affordability and it’s unlikely that a part-time salary will reach the 3 x monthly rent that LLs typically use to calculate this.
Mortgage statements that show you maintaining payments over 6 months would be helpful.
Do you have a homeowner who could act as guarantor?
Hi,
Thanks that’s helpful just real shame that no one will likely help a family out it’s not fair really when I’ll have the money to rent.
And no I don’t have anyone that can be a guarantor.
I have the Mortagge statement never not paid in 7 years. I do also receive income from benefits that top up my earnings.
@Coral2
Every LL has different criteria but a steady stream of income trumps savings because savings can be spent, given to someone to pay a debt or whatever. It does make it harder for some people to find a place to rent but not impossible. You can just expect it to be harder.
The 7 years of mortgage payments counts in your favour. So does the fact you paid off the IVA. Be upfront about it don’t wait till a LL.finds out through a referencing report.
There are also companies that will act as a guarantor for you (for a fee)
Best register with some agents and get them to understand your circumstances…
Good luck
that’ll definitely help, and I would take that into account… although be prepared for LLs less generous than me to turn you down simply because of that (although they won’t tell you that’s the reason).