Buy to Let

Should rental payments be considered to boost credit score?

An interesting survey of nearly 3,000 buy-to-let landlords, carried out by the Residential Landlords Association, suggests that 61% would back a link between good private tenants and their credit score.

Over six in ten landlords questioned said private tenants who pay their rent on time should receive a boost of their credit score, to make it easier for them to get a foot onto the housing ladder.

Credit Rating

Routinely, credit rating agencies do not consider rental payment history when calculating credit scores. This can make it difficult for them to obtain a mortgage, even when tenants have not fallen behind on their payments.

The Residential Landlords Association believe that including rental payments in this way would make it easier for landlords to gain a better understanding of a would-be tenants’ credit and rental payment history.

Should rental payments be considered to boost credit score?

Alan Ward, chairman of the RLA, noted: ‘With many tenants wanting to buy a house of their own, it is absurd rent payment is not routinely included when undertaking credit checks for mortgage applications.’

‘Moving to such a scheme would help not just tenants, but also landlords by giving them a clearer sense of whether a prospective tenant has historically paid their rent in full and on time.’[1]




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