MSE News: Missed rent payments could cost you a loan or mortgage

Done

This is terrible news.

StacFace

ValHaller wrote: »

When practice meets theory, you might find that thousands of people who pay their rent on time have their credit ratings trashed due to maladministration, bungling and even malice from Landlords and Agents who resent being asked to do repairs.

At which point the tenant should be able to produce their bank statement or other proof that they paid on time, which should then result in them having the error corrected and the landlord legally held accountable. If this isn't what would happen according to the current law then the law should be changed so that is what happens. This shouldn't prevent rent being reported in the same way a phone contract bill, for example, is. It's unfair and illogical.

Besides you could say the same about phone companies and credit card companies potentially saying you paid late because you made a complaint or you excercised your section 75 right. What stops them?

tom9980

StacFace wrote: »

Besides you could say the same about phone companies and credit card companies potentially saying you paid late because you made a complaint or you excercised your section 75 right. What stops them?

Regulation stops them and a proper complaints procedure which i hope means we will need proper landlord registration and regulation.

Typhoon2000

I think this will be a good thing whe it comes to apply for a mortgage as it show the mortgage company that you have been comfortably paying rent every month on time that is greater than the future mortgage payment. Should help with proving affordability.

kingstreet

Typhoon2000 wrote: »

it show the mortgage company that you have been comfortably paying rent every month on time that is greater than the future mortgage payment. Should help with proving affordability.

It doesn't. A lender's affordability model is based on you owning a property and having ownership responsibilities you don't have as a tenant.

Lenders want to see a clean rental payment record, but it won't have any impact on affordability.

Planeshift

What happens if you pay every month on time, but to a small landlord not registered. Will you suffer because the system doesn't have a record of you paying on time regularly?

tom9980

Planeshift wrote: »

What happens if you pay every month on time, but to a small landlord not registered. Will you suffer because the system doesn't have a record of you paying on time regularly?

Make it compulsory to register as a landlord and illegal to let property with heavy fines if you dont. The HMO part of the council and the deposit schemes could deal with the administration of this. For instance compulsory registration of deposit in one of the 3 schemes who put it on your credit file at start of tenancy and mark it as paid or not at the end of tenancy when deposit is claimed back.

Net result tenants get a credit file boost and better landlords while landlords get to see which tenants pay or not.

wanting_an_easy_life

Thing is though, to get a mortgage, usually the bank insists on a reference from the letting agent anyway?

kingstreet

wanting_an_easy_life wrote: »

Thing is though, to get a mortgage, usually the bank insists on a reference from the letting agent anyway?

In 28 years, I can remember every time a lender has requested a landlord's reference as they are less than a handful.

I have a current case with Nationwide. The applicant has been privately renting for five years. There is no requirement for any evidence of rent payments, or a reference.

It doesn't happen as often as you think.

Typhoon2000

kingstreet wrote: »

It doesn't. A lender's affordability model is based on you owning a property and having ownership responsibilities you don't have as a tenant.

Lenders want to see a clean rental payment record, but it won't have any impact on affordability.

True, but it should. Regular rent payment should show that you can manage a household whilst some some living with parents rent free might not have any experience of.