Why did I not pass referencing?

Poor income to rent ratio

Referencing agencies will usually use a ratio of around 2.5. This means that your gross salary must be at least 2.5 times your share of the rent. If there is more than 1 tenant you should provide accurate details of your respective gross incomes to the agent. It may be possible for the rent to be proportioned unequally for referencing purposes.

Debts

You will not pass your referencing if you have a CCJ (County Court judgment) on your record.

A CCJ is debt you owe that has been taken to court and stays on your credit for 6 years. You can pay your debt, or you will have to wait 6 years for it to be removed.

If you pay the debt in 1 month it will get cleared from your record but if you pay after the month it will still be on your record, but it will say “satisfied”.

Missed payments on credit cards and loans will have a detrimental effect on your credit score although your score must be very bad to fail referencing.

Employment Status

If you are visiting the UK on a Visa or whatever your circumstances are, and you are not able to pass referencing ask you agent if you are able to pay in advance.

Self-employed tenants, your income will be measured as an average of the last 3 full years, as stated in your audited accounts. Undeclared payments received will not be classed as income.

How to still rent a property even if you FAIL referencing

Guarantor

If you unfortunately fail referencing, you will be asked if you are able to provide a guarantor.

A guarantor is a third party, such as a parent or close relative, who agrees to pay your rent if you don’t. Your landlord can ultimately take legal action to recover any unpaid rent from your guarantor.

You must also make sure your guarantor can pass referencing otherwise you will be right back where you started.

Pay in advance

If you fail referencing and you have tried using a guarantor but that also did not work. Be sure to ask your agent if you can pay in advance.

You can normally pay from 6 months in advance or anything above. It will also make the process a lot faster if you want to move in as soon as possible!