Just wondering about a few things regarding the affordability check. I earn more than £40000 per year with my job but I’m on fixed term contracts that have been prolonged now for 6 years. My partner just got a new permanent job where he’ll earn £23000 per year. We need to leave our current property that we rent for £850pm and have been renting for 6 years and find a new tenancy in a new city. We want to look for somewhere ~£900pm, however my contract might end before the end of a 12 months tenancy. It might be extended again but depends on funding and no insurance about this. I’m wondering whether we will pass the affordability checks. We obviously will pass for the time I’m employed but I’m worried the fact that our household income might reduce towards the end might make it fail. It’s a bit of a complex situation but I’m sure many people have had the hurdle before. Thanks for the help !
Landlords will be informed during referencing if your income source is due to end. Your best bet would be to provide a UK-based guarantor if you are able to. We’d recommend being upfront to any prospective landlords about your situation.
That’s a considerable joint income so, if you were my applicant, I’d be expecting to see a nice cushion in savings. That would show that you are responsibly anticipating rainy days. If no savings, I wouldn’t let to you because no failsafe if you do not get work.
You should also have 6 years of accounts, hopefully done by a chartered accountant. They would be invaluable to prove that you are worth your salary and have had continuous income. They don’t guarantee the future, but they certainly show that you are someone who can earn consistently.
Finally, once the RRB comes in, all tenancies will lose any fixed terms longer than 2 months. So, you won’t be bound to pay a year if your income does fall significantly and you need to find somewhere cheaper. But, that’s not law yet so expect to be committed for at least another six months.
Thank you for the answers. It makes a lot of sense and wherever we apply for, we had planned to be as transparent as possible. We do have savings and we can demonstrate our income so that is good to know.
I must say I wasn’t aware of the changes with the RRB as our plan was not to move initially from where we live.
Thank you again for the reliable answers, it really helps to think about what we can expect.