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.

74 thoughts on “Rent a House during an IVA

    JulesJ says:

    Hi, I am currently living in a rented property with IVA. My relationship with my partner has broken down. He is Tenancy holder my name is on Tenancy over 18 only. I have being contributing to the rent & bills last 6 months. But my landlord has told me I can’t stay in the house because he can’t get Insurance for me to living in the property due to my IVA? Can you pls? I also have two children under 18 year old.

      Hi JulesJ

      I have never heard of a landlord having this kind of issue….. They should have no problem getting insurance for their property or possessions if you (as their tenant) are in an IVA. Your IVA does not affect their property in any way. It only affects you and your credit file. It will not show up on any credit check that is carried out on your landlord. If asked in any application whether they are in an IVA, they can correctly say no as they are not.

      That said, whether they want you to remain as a tenant if you have an IVA is entirely up to them. It is possible they are worried about you being able to pay the rent and are just using their inability to get insurance as an excuse…..

    Josephine says:

    Hi, My husband is on IVA while I am on DMP but we never had issue on our rent payment ever since. Our currently rented flat has been sold hence we need to find new house to rent before 30 May 2022. When I found the place to rent and gave our offer to the landlord, they accepted us however when they knew that my husband is on IVA, they backed out refused our offer!
    What shall we do now if Landlords and Estate Agents do not accept renting with IVA?
    We need to find a new place before end of May as this property we are renting has been sold already.
    I need your advice please! No one could give us advice even the Citizens Advice Bureau and Southwark Council Housing is impossible to reach as their contact number is always close/unattended! Thank you!

      Hi Josephine

      I am afraid I don’t think I am going to be able of much help to you. The problem you have is very common. Your husband’s IVA is registered on his credit file and when potential landlords find out about this by doing a credit check, they are often scared off.

      I can’t offer any more advice than which is already stated in the article above. I suggest you always be up front with any potential landlord about the IVA. That way they can tell you immediately if you won’t be able to help and you don’t waste your time. Perhaps you will find a landlord who is sympathetic. The only other suggestion is to ask someone you know if they will act as a guarantor for the rent. However, even if you can, this is not fool proof solution…..

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