I was turned down by a letting agent for failing a credit check despite me telling them that I was in a trust deed. I eventually had to find a private landlord that didn't require a credit check but it is something to be aware of that some agents are not interested.

I had entered into a trust deed and then rented a property. I told the letting agent about it. They said that I could find a guarantor if I failed the credit check - which I expected to happen. They also said that even if I failed the credit check it was at the discretion of the landlord whether I could still rent the property. In the end, I passed their credit check. No idea how but they did hint that they weren't too fussed about a particularly high score. That was with Countrywide and I have had no issues with them since.

Hi A.D.

Just to add a little reassurance...

Over the years many people have raised concerns about their ability to rent privately while in a trust deed in this forum. However, I cannot remember a thread in all this time where someone simply hasn't been able to because of credit rating issues.

Upstream makes a great point about being open and honest from the start; two qualities that any landlord would respect. That also means there will not be any nasty surprises later.

AlphaB also makes a very useful point. Even if one particular landlord were unwilling to accept you as a tenant there are very likely to be others that take a broader view.

It's perhaps worth mentioning to agents and landlords that the budget for a trust deed places priority on making rent payments in preference to payments for unsecured debts.

I commented on previous posts, as a Landlord. Maybe you can still find them?

Essentially, it's down to the view of the risk. That's the Landlord's if they manage the property or the agency if they manage it.

I always do a credit check, for the tenant and the guarantor where that's relevant.
It does show up DMP's and Trust Deeds &Bankruptcy but also confirms addresses etc and criminality/fraud. It is something I tell applicants in advance.
Having arrangements in place makes a better risk for Landlords than not.
Keeping this information from the Landlord is likely to start things off with mistrust.

Always very useful to have the perspective of a landlord when these sorts of questions appear Pamjo.

Thank you.

Hi all,we are in the same dilema. We finish our TD in June (hurry!) but we need to rent a house and are about to be credit checked by the Estate Agents. I got a copy of my Experian report and was reallly surprised as it said the score was 999 (great) with 6 positive factors and 1 negative (the TD). How can this be as I was certain that the credit score would be terrible, is it because it's been nearly 3 years and we've made all our payments?

Has anyone else had this experience?

Thanks

Hi cashpoor.

I'm afraid our standard response on this subject is that we're not credit rating experts. We do often hear from people that they're surprised that their credit score is higher than they expected at the end of their trust deed.

Credit scores are a pretty abstract measure produced by credit reference agencies that don't actually mean much. They are intended to be indicative of how a lender 'might' score a credit application from you based upon the information present. In reality all lenders use their own scoring and acceptance systems based on the information in application forms, credit reports, and their own lending experience.

How does that relate to landlords? Having a high credit score might well help you (so long as they use Experian as well) but its probably still best to discuss the trust deed in advance so that there are no shocks or surprises.

We have just recieved great news from the estate agents, we've passed the checks and can move as planned. I would advise anyone in the same position to get a copy of their credit report as it may not be as bad as you think.

Thanks to this forum for great info over the last 3 years it's been so reasurring to not feel alone.

i think it is worth remembering why landlords want credit checks done- scoring doesn't really tell a lot. MOre important is affordability, honesty and money management. A TD being managed for a length of time is a positive as opposed to 6 months of being over the overdraft limits in a bank account.

Yeah, it's a little ironic, isn't it, that people who have been through a TD are probably the best money managers in the entire country and know EXACTLY what they can afford.

Cheers

DebtFreeWannabee

A.D-
Hopefully you can take some encouragement from cashpoor's posts.
Agencies can use different companies for credit checks (or none). In some ways it could be useful to know which companies they will use but try not to put too much weight on this alone.
There is quite a significant variation in what is recorded, how it's displayed and how current the information is, ultimately meaning the information from credit scoring is of variable use.

The fees for referencing, deposit plus 1st month's rent in advance are all standard to a degree.
There can be big differences between agencies/landlords on the size of the admin/referencing fee.
Personally, I don't look to cover my costs fully, just outlays as I see it as a tool to help me start a tenancy with confidence.

Shop around if you're just registering with letting agencies generally. You may need to enquire re what fees apply if you're looking for a particular listed property with a certain agency.

I'm sure other Landlords and some agencies take a fairly practical view. If you haven't rented before, ie have no Landlord reference then I may put more weight on payslips and bank statements to check affordability and solvency.

Then there is an element of 'gut feeling' which is much much LESS valuable to me than it used to be. Sometimes people misrepresent what they bring in terms of risk and tenancy history. I have been taken in to my cost (financial and non-financial)and now rely on actual verifiable documents as well as face to face discussions with previous landlord and /or employer.

In summary I am less concerned with the facts than I am with attempts to mislead.

Another issue that has come up is where one partner has a pTD or other solution and there's a request for the tenancy to be in one adult's name rather than both. I'm fairly sure that few agencies or Landlords will do this. There are many reasons-if rent is defaulted on and the only adult remaining in the property is the one who was not on the lease, there is no legal route for evicton. Equally, there is no right for any specified period of notice to be given to the person who is not party to the lease agreement.

Been off the site for a couple of weeks, so just catching up. Would just like to thank you all for your replies and to say that my mind has been put at ease somewhat by the biggest majority of them. Thanks again folks !