Tue 19 Sep 2017
A date has been set for MPs to debate whether rental payments should be sufficient proof of mortgage affordability.
A petition on the Parliament website had reached 147,307 signatures when it was closed in May ahead of the General Election, but the Treasury had also responded stating: “Lenders must consider a range of factors when assessing a mortgage application. Meeting rental payments is not sufficient in itself to demonstrate affordability over the lifetime of the loan.”
Typically, any e-petitions on the Parliament website that reach more than 100,000 signatures are later debated in the House of Commons.
MPs will debate the proposal on October 23, but this doesn’t mean anything will change, especially as this is something a lender rather than Government would usually decide.
The petition, attributed to Jamie Jack Pogson, said: “Since living on my own I have paid £70,000+ in rent on time yet still struggle to get a mortgage.
“Unless you’re getting handouts, wealthy or in receipt of inheritance it’s almost impossible. I want paying rent on time to be recognised as evidence that mortgage repayments can be met.”
Sheraz Dar, chief executive of CreditLadder.co.uk, which helps tenants improve their credit rating, said: “This shows the Government is serious about getting more tenants on to the property ladder. It originally said it was not going to enable parliament to debate the petition after the snap election, but has now changed its mind.
“Millions of UK tenants pay billions of pounds in rent every year and yet it doesn’t count towards their credit history unless they’ve signed up with a service like ours.
“The Government said in their General Election manifesto that they wanted to make the UK a nation of home owners again, and this is clearly part of that commitment.”
Source: Property Industry Eye