Making rent count: Why it’s time for all lenders to step up – Ganatra

Suffolk Building Society and Skipton Building Society have taken a bold and necessary step by recognising rental payment history as part of mortgage affordability assessments.

This is more than just a policy tweak. It’s a clear signal that these lenders understand the realities faced by first-time buyers, particularly those who have demonstrated financial discipline through years of consistent rent payments.

For too long, a strange contradiction has existed in our mortgage market: individuals paying rent that often exceeds the equivalent mortgage repayment are told they lack the means to borrow. This outdated model ignores the strongest indicator of repayment capability, which is a proven track record of meeting housing costs on time, every time.

Why this matters

In my view, this is about fairness, common sense, and social mobility.

• Fairness, because people who have been making substantial monthly payments without fail have shown they can handle the responsibility of a mortgage.
• Common sense, because the data is right there in their bank statements, offering a reliable, real-world measure of affordability.
• Social mobility, because excluding rental history disproportionately penalises younger buyers, those without family financial support, and people in regions where renting is the only option before buying.

Suffolk and Skipton have demonstrated that policy change doesn’t need to come from government edict; lenders themselves can drive innovation. By embracing rental payment data, they are helping to bridge the gap for thousands of would-be homeowners currently locked out of the market.

Charlotte Grimshaw, head of intermediaries at Suffolk Building Society, said: “Following broker feedback, it was clear that something had to be done to improve affordability for first-time buyers and so the enhanced income multiples, when combined with other affordability-boosting tools, such as five-year fixed rates or longer terms to reduce monthly payments, should help more renters achieve their dream of buying a home.”

The role of the big retail banks

While I applaud these building societies, I must also pose the uncomfortable question: Where are the big retail banks?

The high street giants have the scale, the reach, and the technology to integrate rental data quickly. More importantly, they have the power to shift market norms. If they follow suit, this could become standard practice across the sector, making homeownership a realistic ambition for many more households.

Without their participation, we risk creating a two-tier lending system, one where only a small subset of lenders recognises the obvious link between rent payments and mortgage affordability. That’s not a future any of us should accept.

A call to action

The evidence is clear: regular rent payments are one of the best indicators that someone can manage a mortgage. The technology to capture and verify this data exists.

The will to make change is beginning to emerge. What’s needed now is collective action.

So to my colleagues across the mortgage industry, especially at our major retail banks, I say this: “Let’s make rent count”. Let’s align our lending criteria with the financial realities of today’s market. Let’s ensure that the ability to buy a home is based on proof of responsibility, not outdated assumptions.

If Suffolk and Skipton can lead the way, so can we all.