They want rental payments counted towards credit score
One in ten (10%) UK private renters have been unsuccessful in getting a mortgage, yet 80% of private renters have never missed a rental payment, according to new research from private rental platform Canopy.
Of those aspiring homeowners who haven’t been approved for a mortgage, a quarter (25%) were rejected due to poor credit history, 24% didn’t have a big enough deposit, 15% had previously taken out a payday loan, and 13% had too much debt.
However, the private renters surveyed pay an average of £753 a month in rent and with 80% of private renters never missing a rent payment, Canopy pointed out that there is evidence to suggest that renters can indeed keep up with mortgage payments, they just don’t have a record of this on their financial history.
With this, 70% of private renters who have always paid their rent on time believe their rent payments should count towards their credit score. In turn, this would prove their affordability through the commitment they’ve shown to rent payments, as the average renter has been renting for nine years.
However, the Canopy research found that 27% of private renters do not know what their credit score is, providing a stumbling block when they come to apply for financial products.
“Our research has made it clear that the vast majority of renters are reliable, consistent tenants who honour their finance commitments, yet they can’t get a mortgage,” Chris Hutchinson, chief executive at Canopy, said.
“Renters need to be tracking these rent payments so that they can improve their credit score throughout their renting journey and ultimately put themselves in the best position possible when they apply for a mortgage.”
The research, carried out by Censuswide between March 16 and March 21, 2022, for Canopy, surveyed 2,013 UK private renters aged 18 and above.
