Rent a House during an IVA

Rent a House during an IVA

If you rent a house or flat it should not be affected if you start an IVA. However there may be implications if you decide to move to a new property.

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Can you continue to Rent your House if you start an IVA?

Starting an IVA will not affect your ability to continue to live in a property you are currently renting. Your landlord will not be told. As such as long as you continue to pay the rent on time you should have nothing to worry about.

Your negative credit rating will not affect your landlord’s property. A property cannot be blacklisted. It is the individuals who live in the property who can have a poor credit rating but not the property itself.

The Arrangement might actually improve your relationship with your landlord. Once the Arrangement is in place you should always be able to pay your rent on time because the required cash is budgeted in your living expenses.

It is unlikely that anyone will ever discover you are in an IVA unless you tell them.

The Implications of moving to a New Rented Property

A monthly payment IVA will normally last 5-6 years. During this time there could be many reasons why you might need to move to a new rented property.

In theory there is nothing to prevent you from doing this. However if your new rental payment is either higher or lower than the amount you previously paid it will affect the Arrangement.

If the rent is higher your living expenses budget will increase. You may not be able to afford this without reducing your IVA payments. It might be possible to do so but the agreement may have to be extended as a result.

If your rent falls after moving to a new property and your disposable income goes up as a result you may have to increase your IVA payments .

Will your credit rating stop you renting a new house during an IVA?

Once you start an IVA your credit rating will become poor. This will cause problems if you want to move and rent a house or other property using a letting agent during the Arrangement.

The issue is most letting agents will credit check you. You will fail this because of your IVA. As such it is usually best to be upfront with the agent about your situation. If it is going to be a problem there are some things you can offer to overcome this.

You could suggest paying rent 6 months in advance. However given your financial situation this is likely to be difficult. Alternatively you could offer a Guarantor. This could be a family member or friend who confirms they will pay your rent if you are unable to do so.

Your poor credit rating will not normally be taken into account if you are planning to move into a rented property owned by the Council or local Housing Association.

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52 thoughts on “Rent a House during an IVA

    Tim C says:

    Hi my iva has been live for about 2 and half years now with no missed or late payments. Do you think it would still stop me from renting a property. Many thanks. Tim.

      Hi Tim

      Even through you have paid your IVA on time every month, this does not have any bearing on your credit rating. As you are aware, your credit rating will be poor due to the fact you are in an IVA (irrespective of whether you have paid on time or not). For this reason, you are likely to struggle to rent a new property because you will fail any letting agent credit check.

      There is no easy solution to this i’m afraid. The best option is to rent from a friend who does not require a credit check. If this is not an option, some letting agents will consider you if you are able to offer someone with a clean credit score who can act as a guarantor for the rent. But not all i’m afraid.

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