Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of taking further steps to encourage mortgage lenders to use rental payment history when assessing the viability of a mortgage application.

The Government is committed to making the aspiration of home ownership a reality for as many households as possible. The Government works closely with the Financial Conduct Authority (FCA) to consider the regulation of the mortgage market and is regularly in contact with mortgage lenders on all aspects of their business, including the use of rental payments for affordability assessments.

FCA rules do already permit lenders to take rental payment history into account where appropriate. In their December 2025 Feedback Statement, the FCA highlighted several challenges and risks to using only past rental payments as a basis for affordability but stressed they would support market-led innovation in the use of rental payment data. The UK benefits from a competitive mortgage market and loans are currently available in the market which explicitly use a tenant’s rental history as part of the underwriting process.

The Government also recognises that some prospective first-time buyers, including long-term renters, may be able to demonstrate affordability through a consistent record of rent payments but still face difficulty in saving for a deposit. The Government-backed Mortgage Guarantee Scheme, permanently available across the UK on properties of any value, is designed to support and sustain the availability of low deposit mortgage products for credit-worthy borrowers, including mortgages with a deposit as small as 5%. 95% loan-to-value mortgage products can be particularly important for those who may struggle to raise larger deposits.