Money advice

I'm looking into credit unions now. Has anyone had any experience?

I volunteer in St Albans one, 2% apr (usually) maybe 1% if you are lucky and our one pretty much always gives out a loan of up to £500 to someone who really needs it. As you are in work I wouldn't be surprised if they provided a sensible sized loan.

But yeah they would be a good bunch of people to turn to for a short term loan so long as you can provide some pay slips, 3 months of bank statements and demonstrate a good reason for the loan. :)
 
Really? Surely that voids the whole point of a deposit.

Not really - the deposit is to cover any damage during your tenancy, or the last month's rent - it's designed so that the owner of the property isn't out of pocket, but it's by no means set in stone that it's required.
 
Not really - the deposit is to cover any damage during your tenancy, or the last month's rent - it's designed so that the owner of the property isn't out of pocket, but it's by no means set in stone that it's required.

And what if he wrecks the place and disappears after one month? :confused:
 
Apply for a Credit Card with MBNA, I thought I would never get it as I only put a part-time job in my application, but they gave me one with a £2600 limit, 95% I think it was, off which you can transfer to your bank account for a £80 fee or so, and I got 16 months to pay it off, interest free. Like a small loan :)
 
And what if he wrecks the place and disappears after one month? :confused:

If you knew him you'd know he wouldn't.

TBH Ben I'd try a credit union, or has been suggested try and find an understanding private landlord and see if there would be anything they could do for you. When I first moved up here from Bridgy my first landlord let me pay the deposit over 3 months.
 
Apply for a Credit Card with MBNA, I thought I would never get it as I only put a part-time job in my application, but they gave me one with a £2600 limit, 95% I think it was, off which you can transfer to your bank account for a £80 fee or so, and I got 16 months to pay it off, interest free. Like a small loan :)

Thanks, I'll look into it!

If you knew him you'd know he wouldn't.

TBH Ben I'd try a credit union, or has been suggested try and find an understanding private landlord and see if there would be anything they could do for you. When I first moved up here from Bridgy my first landlord let me pay the deposit over 3 months.

Hey mate, yeah I'll try and find a landlord who's negotiable on the deposit. I'd still like to have the security of having a credit card/loan if I don't find one though! Don't want to be in the position where I can't find an affordable flat and my tenancy is about end.

Get another girl in to share with you :o

Make sure you learn from this :o both about money and women.

Live and learn :(
 
Hey benjo,

Couple more suggestions from me:

Even though you're not saving much at the moment, you seem to be saving some, and paying off your mum, so I agree that not giving notice until you have this sorted is the right thing to do. £700 isn't that bad for London, I imagine you're looking at £400-500 sharing, plus bills, but is that still close to your office? Make sure you factor in any additional travel costs, cos you'll assume you'll be saving 200 quid a month but with extra costs of travel or moving it might be more like £50. Factor in cost of van hire etc if you gonna need it, and make sure you have not only first month's rent + deposit + admin but some contingency as well. Also, if you pay off your mum then it won't be as awkward to ask for a couple of hundred quid again when you do move. :)

With regard to your work, they might be willing to give you a significant advance on earnings, but companies often do loans for certain things, like long-term train tickets, or bike schemes, check those out. They usually have a tax break, so you're not just paying off the loan at 0% but you save on tax a bit too, might only save you a bit of cash.

Next, start applying for 0% credit cards, moneysupermarket or moneysavingexpert will have lists of the 0% transfer rates etc, some have discounted rates, some have 0 rate for transferring other balances across, start looking around (perhaps after you've checked your credit so you don't waste time applying for things you won't get). Maybe do a search for cards that a more generous on credit checks as well, if you successfully get one and use it for a month or two then that will help you chance of getting other, but also it would mean that you could take out money on it and then if you get a 0% transfer credit card you can move the whole balance across and pay no interest for a year or so!

Also, I'd suggest you speak to your local council where you live, find out about any local loans or schemes or grants. They can also double check there's no in work benefits you could be applying for. I doubt there will be, but doesn't hurt to ask. Which borough do you live in? If not council then Citizen's Advice Bureau.

With regard to income, you could consider getting a weekend job, like bar work or something like that, just go get you over this hurdle. If you make another £40 a week then that's another £170 a month you could be saving. £350 in two months, plus the £700 a month you already pay, plus you have £400. so that's £1,450. It might also help with credit card applications. Based on the fact you're already saving even £25 a week would help a lot, done consistently. If you don't want to get another job, then consider selling stuff on ebay or that sort of thing. Alternatively/as well, look to reduce costs, if you save £20 a week on some form of expenditure, that saves you getting a job and is almost an extra £100 a month.

Lastly, where you move to is important. Given your situation, moving to somewhere where you are living with the owner of the flat/house is likely to mean you could get away with less deposit-wise, as they will be there to keep an eye on you, so they'll be a bit less worried about you. Or, since you don't HAVE to move, shop around for a similiar deal as you have now (I've no idea how you managed it, but if one place let you move in without deposit, there must be another cheaper one elsewhere). There are also some places where you can live rent free as a sort of caretaker, guardians I think they're called, in London demand is very high, and sometimes the buildings are a bit weird, but you could register on their site regardless, it doesn't hurt, even if it takes a couple of years to get an offer of a place.

My final note, don't be too keen to move somewhere cheaper with a deposit, landlords often find some sort of excuse to keep a sizeable chunk of your deposit at the end of the tenancy, there's ways to mitigate it, but it's always a risk. So you might think you'll be saving £100 a month, but if you stay there a year and end up losing £600 of your deposit then you're only really £50 a month up (for example).
 
Do you have a work notice board?, put a "looking for private room rent" - for that kind of rental agreement you don't normally need a deposit.

You can also search for room/house-share which don't ask for a deposit (sorry I've you've already tried this :P).

Gumtree type adverts may yield more than a letting agency website (as all those will ask for deposits) - people renting out a spare room usually may skip the deposit side (if you ask nicely & explain why).
 
How about becoming a property guardian?
I've read if you are happy to move about you can get really cheap rent and possibly paid utility bills.
Might be worth a shot.
 

Thanks for all the suggestions mate! The £1400 I've estimated is including all the extras, I might even need a bit more.

I've read that applying for a lot of credit cards can make things worse for yourself?

I'm going to be looking for a house share that's on a bus route to work, or even better within walking distance like I am now.

Do you have a work notice board?, put a "looking for private room rent" - for that kind of rental agreement you don't normally need a deposit.

You can also search for room/house-share which don't ask for a deposit (sorry I've you've already tried this :P).

Gumtree type adverts may yield more than a letting agency website (as all those will ask for deposits) - people renting out a spare room usually may skip the deposit side (if you ask nicely & explain why).

How about becoming a property guardian?
I've read if you are happy to move about you can get really cheap rent and possibly paid utility bills.
Might be worth a shot.

These are two options that I'm definitely keeping an eye open for. I'm not sure where to start with the property guardian thing though!
 
Talk to the local council. They have schemes to lend you the deposit if you are going to be made homeless. It is a kind of deal to stop you signing onto their housing lists.
 
Are you on the electoral roll at your current address? I believe if you aren't that a lot of times you'll be denied credit. This MSE forum post has advice about fixing that if you aren't. It is a pretty old thread but should still be relevant.
 
Talk to the local council. They have schemes to lend you the deposit if you are going to be made homeless. It is a kind of deal to stop you signing onto their housing lists.

I'm not going to be made homeless though. I can always renew my current tenancy, but it'll just cost me a lot more than I'd like!

Are you on the electoral roll at your current address? I believe if you aren't that a lot of times you'll be denied credit. This MSE forum post has advice about fixing that if you aren't. It is a pretty old thread but should still be relevant.

I'm not no, but I'll look into it. Thanks.
 
I was in the same situation as you - Couldn't get a credit card from my bank & couldn't get an overdraft on my debit card (21 and i've moved around a lot, apart from that very good credit rating through phone contracts/direct debits not being missed).

I ended up going for a credit card supplier online that focus on giving credit to people with bad credit ratings. I decided on going with Aqua - i started with a £250 credit limit, and after two months they upped that to £600, and they'll probably up it again soon enough.
 
Just another thought mate, not sure if the site is still going but you could try spareroom.co.uk OH's brother found a place on there living with his landlord. He paying around 325pcm for a double room in Wokingham, bills included, and had a negligable deposit. Obviously would probably be more in London depending on what borough you're in but might be with a shot.
 
I'm going to need at least £1400 for the move (due to admin fees).

So whats the 1400 for?

Ive lived in various parts of London the past 6 years (and Im sure many others can attest to this).

But house shares cost various amounts and they are usually done by people that just want someone whom is honest and will pay the rent ...

Ive stayed at one where I couldn't pay the first and last months so only paid the first and worked on the last etc ...

costs vary but 400 is a bit cheap but doable ... 500-600 a month (all inclusive) should get you something fairly decent.

IMO go somewhere else if they want 1400 ... and get a receipt or something ...

Tons of places you could live that will not cost you 1400 ...
there is no such thing as admin fees when flatsharing ... look at gumtree or find a property or errr forgot the others ...
 
Back
Top Bottom