Help with bank reference for landlord

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    Help with bank reference for landlord

    Hello all.

    We have been accepted for a great house, on the proviso of references.

    The agent has said that they conduct a bank reference and not a credit reference. Neither of us have a bad history, no defaults, CCJ's or anything like that. However my boyfriend, who will be the one who pays the bills as I am not working due to expecting a baby soon, has been in his overdraft a lot.

    We pay the same rent at the moment as this new place, and can provide proof of this through bank statements. However we are worried as boyfriend has used his overdraft mainly, up until most recently when he has fully cleared it and is now in credit.

    We offered to pay several month's rent up front when we applied as there is such competition at the moment on properties. As well as giving personal references, my boyfriend's employer's references and a guarantor.

    I am worrying incase his being in his overdraft (authorised, never goes over it) in the past hinders our application? We have NEVER missed any rent payments, and as I said we can provide proof that we have paid on time for 12 months the same rent amount.

    They also have my bank details. I have been in my authorised overdraft a little as well, but bills are always paid and I have money coming in. Will they use both our details combined or just boyfriend's? As I wouldn't be able to afford rent on my own, but they know that I am not working at the moment anyway.

    Thanks in advance

    #2
    Would really appreciate a reply to my post, thanks a lot

    Comment


      #3
      Sounds a bit unusual taking a 'bank reference'.

      As far as I'm aware, if they are asked for references banks tend to provide a bare minimum of information, if anything at all - eg not much more than confirming the individual holds an account and has done so for X years - which is why nobody bothers with them much. I could be wrong though. Does seem highly unlikely to me that they'd get into discussion of a customer's authorised overdraft.

      Whatever, I can't see your partner's history as you describe it being a problem. Banks have no problem with people who have authorised overdrafts - that's how they make their money, isn't it? Unauthorised overdrafts are a different matter.

      Comment


        #4
        If the agent asks for bank details and you decline to give them that will immediately excite suspicion. That means you have to give them. Obviously you cannot control what the bank says. You really have to wait and see what the bank says. If the reference is unfavourable or non-committal, then it is up to you to explain why and come up with proposals that will allay any fear that you are not good for the rent.

        Comment


          #5
          You probably haven't had any replies, as is it is very difficult to give a definitive answer. Different Agents/LL's will interpret your financial situation in different ways. You can convinced me that your are sound tenants by your explanations above, but there are a lot of variables that LL's take into account. For instance, if they have had "bad" tenants before, they may be extra wary, or if they are first time LL's this may concern them. Some LL's may want to see you have a regular income to cover the rent, whilst others go through everything with a fine tooth comb.

          However, you have said you have no defaults on payments before, and no CCJ's or gone into the red other than your agreed amount, so its down to the individual LL/LA - No one can make their minds up for them.

          Will you both be named on the tenancy agreement? If so, this would make you're jointly liable for the rent, so both incomes/bank refs should be taken into account.

          I am afraid no one can tell you what your LL's will decide so you will just have wait and see how they interpret the bank info. Good luck!

          Comment


            #6
            Thank you for the replies

            It is an unusual one, normally we just get credit checked, which has always come back fine. We wouldn't be worried if that were the case.

            OH could always provide wage slips etc if needed to back up his income. I am sure his employer would do the same as well. We can also prove we have paid the same amount of rent to our existing landlord for 12 months.

            We haven't withheld anything, we don't have anything to hide. It has just thrown us a bit that this bank reference will be done.

            I suppose it's just a case of saying he is good for x amount a month, and surely the answer will be yes as he has been paying it already and gets a good monthly income.

            I don't know why they would reference me as we have been clear from the start that I am not working, but they have my bank details anyway. We also have a guarantor.

            Hopefully this will all be OK. It has been such a worry already this moving business with me being heavily pregnant, and now got to sweat a bit longer. If they had just done the credit refs they'd have the results the same day I think.

            Comment


              #7
              I thought I'd do a quick update as it may help someone else in future.

              We've been living in our new house for 3 weeks now, after the references received back were good.

              Comment


                #8
                That's great to hear, Blingo- its always nice to hear an update, especially a happy one!

                Comment


                  #9
                  Thanks bry123

                  Comment


                    #10
                    As a point of interest, bank references are/were notoriously vague and pretty meaningless, ranging from 'Customer should be good for figure and purpose' = GOOD; 'Cannot speak for figures and purpose' = BAD, and the truly ambiguous 'Customer in good standing' - we had that one for a tenant who had deposited £25k in the bank the week before but never paid us another pennys rent after his initial month!

                    I can't believe there are still agents and landlords asking for these.
                    My advice is not based on formal legal training but experience gained in 20+ years in the letting industry.

                    Comment


                      #11
                      Silly, I agree. I think a credit check gives a better idea of the whole picture i.e shows any defaults or CCJ's. It would also have been a hell of a lot quicker. We had to wait an extra week to move house because of it. And the damn bank posted the references back 2nd class as well.

                      Comment


                        #12
                        Originally posted by blingo View Post
                        I think a credit check gives a better idea of the whole picture i.e shows any defaults or CCJ's. It would also have been a hell of a lot quicker. We had to wait an extra week to move house because of it. And the damn bank posted the references back 2nd class as well.
                        Glad to hear it worked out.

                        Do you know what the bank ref actually said, as a matter of interest?

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