Is There A Credit Check Carried Out If You Want To Rent An Apartment Or House?

[dave50]

My sister-in-law owns her own home which she has a small mortgage on. However she is in a lot of debt and has decided to sell up, pay all her debts off and move into rented accommodation for now. She has a good job which she has had a few years and can easily afford the rent but I think she may have a bad credit score, will this affect her chance to rent?
Thank you for any advice.

[Jackdaw33]

Having a lot of debt does not mean a bad credit score unless she has defaulted on payments.

[dave50]

But I think she has struggled and has defaulted in the past.

[ummmm]

Then yes, It will affect her.

[Jackdaw33]

Would remortgaging the equity in her home be insufficient to pay off her debts?

[ladybirder]

If she could afford to pay say, 6/12 months rent up front, them the agency or the landlord may not feel the need to credit check. Not all will forego the check (they like to take your money for doing it) but some will. Probably better dealing with a private landlord and perhaps explaining the position.

[dave50]

She wants to sell up and start afresh but it sounds as though she may be stuck where she is if she cant get a rented property because of her past credit history which seems a little unfair, after all, she's not purchasing anything. Perhaps offering 6 months rent in advance may be an option.

[CrapAtCryptics]

With respect that sounds like a stupid idea - cant she take a consolidation loan against the house at a level she can afford - maybe take in a lodger to help.

[ubasses]

When you say she has defaulted in the past, how far in the past. Defaults come of her record after 6 years. If still live this would affect her extending the mortgage as well, though if possible it could be the cheaper option with rents reported as being high and increasing.
This way she would still have an appreciating asset, and she could go into retirement later in life, debt free and no rent to find from her pension.

[themas]

She needs to get her credit records. And she needs free independent debt advice - CAB or another free service.

[RandyMarsh]

She needs proper guidance now, there are other options, IVA, step change etc.