You are here: Home - Buy to Let - News -

Could lenders soon have access to your rental payment record?

0
Written by:
06/12/2017
Could lenders soon have access to your rental payment record?

HM Treasury is offering £2 million to budding entrepreneurs who can develop an application that will enable Britain’s 11 million renters to record and share their rent payment data.

This would help to improve their credit scores and their chances of getting a mortgage, by allowing lenders to use rental payment data in the credit scoring process when they assess an application.

The Challenge was announced in the Autumn Budget, and has been launched this week by the Economic Secretary to the Treasury, Stephen Barclay.

How does it work?

Winning bids to the Rent Recognition Challenge will be selected by a panel of leading figures from the Fintech sector.

The competition will provide an initial round of grant funding to six promising proposals to help to turn the ideas into a workable product. The judges will then whittle the six down to just a handful of teams who will receive further funding and support to bring their ideas to market.

How will it help renters?

The Economic Secretary to the Treasury, Stephen Barclay, said: “People’s monthly rent is often their biggest expense, so it makes sense for it to be recognised when applying for a mortgage. Without a good credit score, getting a mortgage can be a real struggle.

“Most lenders and Credit Reference Agencies are unable to take rental data into account, because they don’t have access to it. The Rent Recognition Challenge will challenge firms to develop an innovative solution to this problem and help to restore the dream of home ownership for a new generation.”

The Challenge will open to applications early in the New Year, and development will conclude in October 2018.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Save money now!

See how much you could potentially save by remortgaging to a different product

Your Mortgage Guides

Guide to Offset Mortgages

Download our handy guide to offset mortgages, brought to you in partnership with Scottish Widows Bank

Read More >

How much can you borrow?

A calculator designed to help you understand how much you can borrow towards your property
Read previous post:
London street
Supply of homes for sale down almost a quarter in November

Homeowners are deciding to wait until the New Year to sell, according to HouseSimple.com, which found that new property listings...

Close