Why Can’t Paying Rent Be Used As Proof Of Affordability For Paying A Mortgage ?

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Buying a home is now cheaper than renting a home for the first time since 2008. But a mortgage is still out of reach to most people despite this fact.

This is due to lenders basing their decisions on criteria laid out by the Bank of England, such as payslips, tax returns etc, not just on people having a successful track record on paying their rent on time.

However, more than a hundred thousand people have now signed a petition to accept rental payments as proof that they can afford a mortgage, or at least calling on some lenders to take past performance as a tenant into account.

One of the guys who formally set up the petition, which is now due to be heard in Parliament, said that he had paid over £70,000 in rent, on time, yet will struggle to get a mortgage based on the criteria required in the current climate.

In a survey undertaken in Scotland – who do seem to be ahead of the game in most areas of property, its shows that the average monthly buying cost for mortgaged property was £525pcm as of December 2016, which is currently £120 lower than the average monthly rental cost for the same period at £645.

This equates to a massive difference of £1440 per year!

Currently, mortgage rules are set and regulated by the Prudential Regulation Authority which are part of the Bank of England.

Paying for your rent on time for years does not cut it apparently, when it comes to mortgage applications according to Prudential!


Back in 2011, there was a mortgage available which needed just a 5% deposit with a four-year fixed rate of 6.49% as long as you could show a 12-month continuous payment of rent.

Even though you were still subject to the usual credit checks and scores, and a reasonably low £195 set up fee, it allowed a little flexibility into what is becoming something that may be impossible for a whole generation to achieve

– the possibility of owning your own home!


The date for the debate is yet to be set, and personally I see very little changes being agreed on this, but in the meantime, you can sign the petition here;


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