tenancy credit checks & IVA

[newtenant]

Have edited this for anyone new who reads this thread (thought it might be easier than reading through)

My situation

Tenant.
Moving from property (deadline 9th Oct 2007).
Have a joint IVA with my wife (agreed 5th Oct 2006).
Have guarantors.
Have good rental references.
Been renting for past 9 years (all good, never late).
4 years in current job.
Separated from wife with kids.
Can’t pay a 6 month bond.
Did a credit check through a letting agent to get new property (Mon 10th Sep 2006), agent uses rent insurance company to decide tenants, failed credit check with an unknown CCJ dated 5th Oct 2006 (IVA day).
Scored 526 in credit check.
Waiting to get an Experian credit check back which I took myself to find out more details about the CCJ.
Had no letters letting me know about any CCJ’s 28 days before CCJ date or after.
IVA practice told me running up to IVA agreement to ignore all creditors, tell them it was out of my hands as it is being dealt with by my IVA company.
Really need to find out how I can get this CCJ cleared.

[MelanieGiles]

I would not advertise the fact that you are in an IVA, unless the application form specifically asks. The IVA may affect your application, if your new landlord is prejudiced against insolvent tenants, and you may have to pay a larger rental deposit - difficult if you are subject to IVA proceedings.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[newtenant]

Hi I was honest and up front to the letting agents and told them of my IVA, I (they)didn't put anything about the IVA on the credit check forms, they have now put the credit check through and just waiting to hear the results, the only thing is, the tenancy is an insured tenancy (insurance company pay 12 months to landlord if tenant defaults) even if my credit check is low, would the insurance company still consider me? (always paid rent, good job (4 yrs), good ref's and guarantors etc)

[ray_a]

I did the same when we rented and we agreed that we would give a six month deposit up front.

This helped a lot.

Good Luck

[newtenant]

I did the same when we rented and we agreed that we would give a six month deposit up front.

Did the insurance company take this into account or the agents?

6 months = (alot) £3600
I'm not sure it is possible for me to get that kind of money, would they would go for just the good rental history & guarantors?

How bad does the credit score go on an IVA (just wondering whats it going to come back with?)

[mikebdomain]

An IVA shows on a credit report under the 'public information' title or 'court and insolvency information' title shown with a balance of £0 with 'voluntary arrangement' next to it with the date under the heading 'court date.

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[newtenant]

An IVA shows on a credit report under the 'public information' title or 'court and insolvency information' title shown with a balance of £0 with 'voluntary arrangement' next to it with the date under the heading 'court date.

Would this be a CCJ?

So i would have a '0' credit rating?

this is not good ;(

[mikebdomain]

No, that would be your IVA not a CCJ
No, that does not mean you have a '0' credit rating.

Your credit report does not give a 'rating' it shows information enabling creditors to make decisions


FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[newtenant]

No, that would be your IVA not a CCJ
No, that does not mean you have a '0' credit rating.
Your credit report does not give a 'rating' it shows information enabling creditors to make decisions

Fewww! my heart just missed a beat

what's all these things you hear about credit score, free online credit score tests etc (ie. 750 = good) is it all just nonsense?

So how do the rental insurance companies take all these things into account?


... thanks for all the replies by the way, really helping to clear the fog

[mikebdomain]

Credit scores are used mainly in the US - Some companies in the UK use bespoke computerised credit scoring systems whereas your (Credit Account Information Sharing) CAIS string from previous credit information is used to create a ‘score’.

Insurance companies use a risk based strategy, whereas they have set questions to which they expect certain answers, if answers given meet their standard industry criteria, the will insure at standard rates, if not, they will load the rate. Some times this load rating will price the product ‘out of the market’. Sometimes insurance is refused as the risk is deemed too high, but this is rarely (if ever) based on a ‘credit score’.


FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[newtenant]

Thanks for the info Mike

So in my scenario

'One year into IVA and all ok'
'Good references from current tenancy'
'Rented for past 9 years never failing to pay'
'Been in my current job for 4 years'
'No CCJ's or BR'
'Can supply guarantors'

What are the chances the rent insurance company will take all this onboard & class me as ok or insurable?

[CoverItAll]

Hi newtenant

My wife and I own property that is rented to tenants. I called our Letting Agent and asked him what his reaction would be to a tenant within an IVA Ian and ITV are. They would still consider the tenant if he were if he or she were able to produce a guarantor or who would guarantee a rental. The guarantor or would have to have an income annually, of 36 times the monthly rent. They would then arrange insurance on the guarantor.

John Tegg
www.asu4iva.co.uk
0845 673 9999

We will make all your IVA payments for you if Accident or Sickness stops you paying them yourself.

[mikebdomain]

You sound OK to me - but then I do not provide this type of insurance...

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[newtenant]

Thanks John, really appreciate it
Very interesting, 36 seems quite allot, although I guess when you break it down it seems reasonable.

I thought guarantors only needed to supply a form of guarantee like say there deeds etc. My parents have been my guarantor in the past, they had good salary when working but they are now retired (also retired at time of previous guarantee)

Thanks Mike

[Skippy]

36 times is a lot! I have looked on Rightmove and the cheapest one bedroom property I can find in this area is £650 a month, meaning a guarantor would have to earn a minimum of £23400. If you go up to a 2 bed it's £750 (£27000 salary) a month and if you are a family and need a 3 bed it's £900 (£32400 salary) minimum. I don't think that's realistic.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/