Last month, Chancellor Rachel Reeves announced plans to let renters use their history of on-time rent payments as proof of affordability when applying for a mortgage. It’s a long overdue move that CreditLadder have been focused on for a long time.

The Chancellor outlined a series of financial reforms aimed at making it easier for first-time buyers to get on the property ladder.

What might change?

Currently, lenders can look at and review rent payment history when someone applies for a mortgage but it’s not compulsory. Recognising regular rent payments as evidence that you can afford monthly mortgage repayments is likely to be factored into the decision making process subject to a review of the Financial Conduct Authority (FCA) lending rules.

Under the new plans, buyers could also be eligible for mortgages worth more than 4.5 times their income making home ownership more realistic for thousands.

On-time rent payments

If tenants can show they consistently keep up with rent, typically their biggest monthly expense, it could help strengthen their credit score and improve their chances of buying a home.

CreditLadder can help you improve your credit score

CreditLadder can improve your credit position by reporting your rent payments. CreditLadder is the first way to improve your credit score and position across all three of the main Credit Reference Agencies in the UK, namely Experian, Equifax and TransUnion and has helped over 150,000 tenants.

CreditLadder also runs a free mortgage application service in partnership with Tembo which will tell you how much you could borrow.