Decision: Accept
What does this mean?
- Tenant has passed, minimum required is for them to afford 2.5 times annual rent and no CCJs/bankruptcies within last 6 years.
- Alternatively they have shown proof of savings (enough funds for rent/shortfall between earnings and affordability, personal accounts, last 30 days of transactions).
- Upad will pass them even if landlord references can’t be taken as they haven’t received a bad reference.
- Tenant can pass even with no credit record (called Zero Credit Score on report) as they search credit for last 6 years still and have found nothing bad.
- For a group of tenants, they’ll be jointly and severally liable when they sign the AST. Upad see a group as passing if the total earnings meet the target, even if one or more are under the group as a whole can afford the property.
Implication?
- Tenant has passed, all references obtained compliantly, Upad see them as good enough to offer insurance for.
- Confirmed they’ll be employed as far as can be reasonably confirmed for the tenancy.
- No evidence of being a bad tenant or credit risk previously.
Options?
- Landlord can proceed further in setting up the tenancy if a tenant is accepted.
- Landlord can always take rent up front if the tenant has passed with savings.
Rent Protection Insurance Eligibility?
- As the tenant has passed the landlord may be able to take out rent protection insurance (if all tenants have passed).
- Requires all tenants in property over 18 to be referenced (whether earning or not as could still be credit risk).
- All tenants referenced must sign AST.
- Referencing must have been carried out within 30 days of AST being signed.