You are here: Home - News -

Rent payment platform launched to help tenants build credit history

by:
  • 17/01/2018
  • 0
Rent payment platform launched to help tenants build credit history
A digital platform has launched which helps renters build their credit history through paying their rent.

The Credit Builder software links tenants’ rental payments with their Experian credit report and provides a full rent reporting service for letting agents and landlords.

Tenants will need to consent to the use of the rent reporting service – their details will then be imported into the platform and each subsequent rental payment they make will be automatically reconciled and reported to the Experian Rental Exchange.

The question of using rental payments to prove mortgage affordability came into the national spotlight last year following a Parliament petition posted by Jamie Pogson from Plymouth raised more than 140,000 signatures.

With rising house prices and rents, first-time buyers have been finding it difficult to save large enough deposits without help from parents.

Government rejected Pogson’s calls to legislate, but announced at the Autumn Budget it was commencing a £2m fund to find a digital tool to help first-time buyer rental payments count toward affordability calculations for a mortgage application.

The competition was formally launched in December.

 

No arrears

Credit Builder CEO and founder Henry Yates said: “The groundswell of opinion that tenants’ rental payments should count toward their credit report is beginning to drive real change in the industry.

“Many renters are understandably keen for this to happen as they view it as a good opportunity to enhance their credit score and improve their chances of being approved for a mortgage.

“With this in mind agents should consider offering a rent reporting service as this is likely to become an important consideration for new and existing tenants, as well as landlords,” he added.

One Nottingham-based estate agent, Walton and Allen, has already signed-up to Credit Builder and has no rental arrears among those tenants using the service compared to an average of 7% for all tenants.

Mark Batty, director of estate agent Walton and Allen, said: “Credit Builder provides much needed support for tenants that want to bridge the gap between renting and owning their own home. Credit Builder helps renters to enhance their credit score and to demonstrate to lenders their eligibility for a mortgage.”

He added: “The benefit to landlords is proven by the fact that all of our tenants using the Credit Builder platform have paid their rent on time and we no longer spend time chasing late payers.”

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Sebastian-Murphy-(left)-Rory-Joseph-(right)-JLM
Network JLM introduces online consumer fact find and web chat

JLM Mortgage Services, the mortgage and protection network has urged advisers to embed technology in customer engagement as it adds...

Close