PropTech firm Canopy says four out of five tenants have never missed a rent payment and that this should give them a stronger chance of securing a mortgage.
And the firm says its research shows that seven in 10 private renters with a clean payment record say this should count towards their credit score.
Chris Hutchinson, chief executive of private rental platform Canopy, says: “With the current cost-of-living crisis, it’s an incredibly tricky time for renters and aspiring homeowners.
“Their day-to-day living is going up and saving spare cash at the end of each month for a future house deposit will feel like an impossible task, and quite frankly not a priority as they look to make ends meet.
“It is therefore more important than ever that time spent renting is used to improve financial fitness. Our research has made it clear that the vast majority of renters are reliable, consistent tenants who honour their finance commitments, yet they can’t get a mortgage.
“Renters need to be tracking these rent payments so that they can improve their credit score throughout their renting journey and ultimately put themselves in the best position possible when they apply for a mortgage. Having an edge over the competition will prove invaluable.”
Canopy claims that one in 10 private renters have been knocked back when applying for a mortgage - and a quarter of those had problems because of alleged poor credit history.
Other issues leading to rejection by mortgage lenders included too small a deposit and separate outstanding debts.
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