Will sharing my rental payments with Experian allow me to get a higher mortgage?

Dear James,

I recently read an article that said renters can get their payments included on their credit report. Do you think a mortgage lender would take this in to account when deciding how much to lend? If I could get a mortgage for £125k, repaying £410 a month, could this be increased since I make regular rent payments of £850?

Luke, Hastings

Dear Luke,

Yes that’s right, you can now arrange to have your rental payments added to your Experian Credit Report. If your landlord has not joined the Rental Exchange directly, you may be able to use services such as those below to self-report your rental information.

When you apply for a mortgage the lender will look at information from your credit report , any records they have about you and, importantly, the information on your application form. They may also ask you for further evidence of your identity, income and outgoings. They do this to satisfy themselves that you are who you say you are, you can be relied upon to meet regular repayments each month, and that you have the capacity to repay the loan you are applying for.

Most will generate a credit score for you based on information from your credit report and application form , which can affect the decision to lend as well as the interest rate they charge and the amount they are willing to lend.

Arranging for your rent payments to be included in your credit report can help strengthen your credit history, so that could certainly help your application pass the lender’s creditworthiness checks. It could also help the lender quickly and accurately assess your current financial situation, cutting out the need, for example, for you to send them written evidence of your rent payments.

If you do add your rental payment to your credit report then it’s a good idea to give it a little time to build some history. About six months is usually a good length of time the lender can judge your repayments on.

When it comes time to apply, make sure you shop around and use comparison sites to see which deals you’re eligible for. Each lender is different so it’s useful to shop around to find the right lender for your situation. You might also find it useful to speak to a specialist mortgage broker.

Good luck when the time comes. (February 2019)

James
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