Tenants who are prompt payers and use a rent reporting service could find themselves ahead in the mortgage stakes.
This is thanks to a new collaboration between CreditLadder and Nationwide.
It is a first in the UK, and in line with the Government’s Rent Recognition Challenge, launched in the 2017 Autumn Budget.
This was a £2m competition for firms to develop applications to help renters boost their credit scores and get on the housing ladder.
Now, for the first time, data accessed via Open Banking will be used to help tenants find out if they are eligible for a mortgage with the building society.
CreditLadder can analyse the income and expenditure data of its users and overlay it against Nationwide’s qualifying mortgage criteria.
Tenants who meet the criteria and continue to pay their rent on time will be prompted to discuss their options – if they wish – with Nationwide’s mortgage consultants and to apply for a loan.
While there is no guarantee that users will be accepted for a mortgage, those who do not qualify will still receive periodical checks to see if their circumstances have changed.
Sheraz Dar, CEO of CreditLadder, said: “Tenants already using the CreditLadder service do so to improve their credit rating as well as looking to increase their chances of being approved for a mortgage.
“With the service now live, the relationship is the first of its kind between a rent reporting service and a mortgage provider in the UK.
“Working with Nationwide is a key plank in our plans to help those who dream of owning their own home to realise their aspirations.”
CreditLadder claims to be the first and biggest rent recognition platform in the UK, enabling renters to add their payments to their credit history.
The company was a final stage winner of the Rent Recognition Challenge and became one of 20 businesses chosen from nearly 100 to join the Treasury-supported Tech Nation fintech programme.
Greg Michel, of Tech Nation, said: “It’s great to see CreditLadder grow as a business and find another way to help people reach their life goals by improving their credit score. We are proud to have them as alumni.”