Specialist lender Together is backing a petition calling for rent payments to be proof potential homeowners can meet their mortgage obligations.
More than 144,000 people have signed the e-petition set up by a tenant who wants his record of paying rent on time taken into account as part of his mortgage application process.
The 27-year-old from Devon started the campaign when he found he was unable to obtain a mortgage, and that his rental payments would not be taken into account.
Pete Ball (pictured), chief executive of personal finance at Together said: “With the continuing shortage of housing in the UK, it’s harder than ever for first-time buyers to get on the ladder. The changes that the government has introduced in the buy-to-let sector, such as the stamp duty increase last year, were intended to level the playing field and ensure more property was available, but what this petition highlights is that there needs to be better access to finance alongside this, so that these aspiring homeowners can get a mortgage for the property.
“The impressive surge in popularity of this petition is clear evidence of the growing frustration among thousands of renters that aspire to own their first home but are struggling to obtain a mortgage from the mainstream banks. Many traditional lenders apply a rigid criteria, and applicants need to tick all the right boxes, so proof of rental payments isn’t necessarily taken into account as part of the application process.”
Any public petition has to be considered for debate in Parliament if it reaches over 100,000 signatures, and requires an official response.
Ball added: “It’s estimated that by 2025 there will be 7.2 million households in the UK which are privately rented, a significant rise from the 5.4 million recorded in 2015, and as this petition clearly demonstrates there is a need to compile more detailed data on the credit profile of these individuals, which will then help lenders to assess their applications when they look to obtain a mortgage.
“If there is a debate following the petition and it leads to new and improved measures in this space, that will be a positive step for both lenders and these aspiring homeowners.”
