The number of first-time buyers is on the rise in the UK and the market is set to have another boost. Renters who are unable to get a mortgage due to a lack of credit rating will be able to increase their chances through one of three new start-ups backed by the government.
The Dragons’ Den style challenge tasked entrepreneurs to create a simple way for renters to record and share their payment data, to help them improve their credit score. And three tech entrepreneurs, have each won a share of a £2 million prize fund as part of the government’s Rent Recognition challenge.
As rent is not always recognised in credit scores, the start-ups are offering three different apps for renters to record and share their rent payment data to help them improve their credit score and in turn help them get onto the property ladder, according to the latest report by HM Treasury.
An expert panel of judges decided on the winners of the government funding and they will now be helping ordinary Brits get onto the property ladder where previously they wouldn’t have potentially been able to.
If your loved ones are struggling to get onto the property ladder due to a lack of credit rating, or you simply want to talk through further options, get in contact with your adviser today.