will my credit rating be effected if i am in rented accommodation?

Simon2015

I was a home owner for 15 years, paying a mortgage and presume have a good credit rating (never been refused). now living in rented accommodation for the last six months and as a result we currently have no debt - credit cards, mortgages etc.. I'll be looking to get a mortgage within the next 18 months and I am concerned that circa two years with no debt will have changed my credit rating and will therefore effect my mortgage eligibility. any advice much appreciated.

Tixy

If the mortgage was only paid off 6 months ago then it will still be visible on your credit file to a potential mortgage lender in 2 year times. Entries stay on your credit file for 6 years from the date they are settled.

You may well have some current credit accounts showing on your credit file (e.g. utiltities/telephone etc often show) which will also help maintain an active credit history.

You might want to consider obtaining a credit card and using and repaying it in full each month, that again will help demonstrate to a mortgage lender a responsible use of credit.

stator

Being in rented accomodation won't directly affect your credit report, it won't show up on there. So it's neutral really.

However make sure you're on the electoral roll and all the bills and utilities are in your name so that they show positively on your report.

As Tixy has said, getting a Credit Card and paying off in full every month is a good way to build a positive credit score.

PaulW922

A mortgage as opposed to renting shows stability. Some lenders will take that into account, others will not.

I agree with Tixy's suggestion. In addition; it may be that your landlord's agent is reporting the conduct of your rent payment back to the credit agencies, which will be good provided you are up-to-date. Current accounts, with or without overdraft also count as credit facilities and are reported back to CRAs. So do some cable TV and internet companies, utility firms, and all contract mobile companies.

If you take a look at your Experian and Equifax files you can see what it there and decide from that if you would benefit from building more of a credit history.