Rental payment histories could play a greater role in mortgage affordability assessments as the Financial Conduct Authority explores how open finance could reshape the mortgage journey.
The regulator has published the findings of a two-day policy sprint involving around 80 mortgage and open finance experts, examining how consumers could use verified financial information more effectively when applying for a mortgage.
The work considers how data held across different organisations could be reused throughout mortgage readiness, applications, remortgaging and later-life lending, potentially reducing the need for borrowers and brokers to repeatedly gather the same information.
It could be particularly significant for underserved borrowers whose circumstances, including irregular or more complex incomes, do not fit neatly within conventional mortgage assessment models.
RENTAL HISTORY
Among the areas explored by participants was greater use of rental payment history as evidence of mortgage readiness and affordability.
The wider work also considers the potential use of verified information covering income, employment, tax, savings and investments alongside credit, debt and property data.
The FCA says the value of open finance will depend on information being sufficiently accurate, current and reliable for firms to recognise it as trusted evidence.
Previous mortgage TechSprints run by the regulator have already tested how open finance data could improve affordability and eligibility assessments, personalise mortgage journeys and reduce duplication during the application process.
The FCA stresses that the latest findings represent ideas and proposals explored by participants rather than confirmed regulatory policy.
MANDATORY PARTICIPATION
However, the work also raises questions about how widespread adoption could ultimately be achieved.
Participants considered whether voluntary participation would provide sufficient coverage or whether potential mandatory requirements may be necessary to create consistent participation across the mortgage and wider financial ecosystem.
Common infrastructure, interoperability and clear rules covering consumer control, accountability and redress were also identified as necessary for open finance to work effectively.
There is already a legislative foundation for further development. The Data (Use and Access) Act 2025 provides powers for the introduction of Smart Data schemes, including provisions allowing requirements to be placed on financial services firms around data-sharing interfaces and standards.
MORTGAGES A PRIORITY
Mortgages have been identified as a priority use case within the FCA’s wider open finance roadmap.
During 2026, the regulator is concentrating on identifying high-impact applications and gathering evidence, before moving towards regulatory framework design and coordination in 2027. The FCA envisages open finance schemes being scaled between 2028 and 2030.
The next phase of its Smart Data Accelerator will also examine the architecture required for data sharing and the trust infrastructure needed for the safe use of agentic AI within a smart data ecosystem.
The FCA says success will ultimately be judged by consumer outcomes, including whether open finance makes it easier for people to obtain mortgages, make informed decisions and understand or challenge decisions made about them.
Read the report HERE.
