Working Hours: Mon - Fri: 9:00AM - 6:00PM
Call Us: 0330 304 3040
Home Mortgage Calculators About Blog
   Back | How it Works
How it Works
Securing an excellent mortgage offer with Revolution Finance Brokers couldn't be easier
1Get in Touch
Complete a quick form to give us an overview of your mortgage or financing requirements, and we'll provide recommendations about the best opportunities for you.
2Submit Your Application
Once you've chosen your preferred mortgage deal, we'll steer you through the paperwork with comprehensive application management from start to finish.
3Mortgage Completion
Revolution Finance Brokers will finalise the details and enable you to move forward without delay!
   Back | About
About
Blog
Contact Us
FAQs
Documents
Areas
Credit Report
   Back | Insurance
Insurance
Business Protection Insurance
Life Insurance
Building Insurance
Home Insurance
Mortgage Repayment Protection
Family Income Benefit
Critical Illness Cover
Income Protection
Life Assurance
   Back | Calculators
Calculators
Stamp Duty
Commercial Stamp Duty
How Much Can I Borrow?
Buy To Let
Bridging Loan
Residential & Commercial Bridging
Mortgage Repayment
Development Finance
Commercial Mortgage
   Back | Choose your mortgage type
Choose your mortgage type
Bad Credit Mortgages
Bridging Finance
Commercial Mortgages
Buy to let
Self Employed Mortgages
Mortgages for Professionals
Lifetime Mortgages
Expat Mortgages
Interest Only Mortgages
Mortgage Affordability
Mortgage Application
Income Types
Residential Mortgages
Development Finance
Property Types
Remortgages
First Time Buyers
Mortgage Rejection
Offset Mortgages
Second Charge Mortgages

Can I Get a Mortgage After Being in Rent Arrears?

Rental arrears can raise their head many years later, especially if you're applying for a mortgage and have questions to answer about your credit score. Here we discuss rental arrears and the potential impact on your mortgage application.

Can I Get a Mortgage After Being in Rent Arrears?

Many people end up in rent arrears from time to time - and might be concerned later on when looking for a mortgage whether it will impact their ability to borrow.

In this guide, the Revolution Brokers team has compiled everything you need to know about how your credit score impacts your mortgage application.

For tailored advice to get the mortgage lending you need, give us a call on 0330 304 3040, or email the team at [email protected].

If I Have Been in Rent Arrears Will It Show on My Credit Report?

It might, yes, if your landlord sent the arrears report to the credit-referencingbureau.

Some letting agents and landlords are signed up to data sharing services such as The Rental Exchange Scheme, where situations such as falling behind with rent are recorded.

The scheme's idea is to help tenants improve their credit score by keeping up to date with rent.

How Does The Rental Exchange Scheme Work?

This scheme means that you pay rent to the Credit Ladder, instead of directly to your landlord. The payment is forwarded to the landlord, and the proof that you have paid on time is shared with Experian to update your credit file.

For rental tenants, this is a way to build up a credit score and can be useful in any future mortgage application.

Landlords often find that the scheme encourages tenants to pay on time.

How Does Paying My Rent Late Affect my Credit Report?

If you have fallen into rental arrears, this can leave a negative mark on your credit file. Lenders might be less likely to offer a mortgage if you have fallen into credit problems before.

A rental arrears report's impact is uncertain and is expected to be treated similarly to less serious credit problems such as late payments and defaults.

What Bad Credit Issues Show on my Credit File?

Any reported missed, or late payments will show on your credit history, including:

  • Low credit score, or no credit score
  • Late payments or mortgage arrears
  • Defaults
  • CCJs
  • DMPs and IVAs
  • Bankruptcy
  • Repossessions

Having adverse-credit doesn't mean you can't get a mortgage - but does mean your best chance of success is by using an experienced broker who can negotiate with specialist bad credit lenders on your behalf.

How Do Mortgage Payments Compare to Rental Costs?

If you are applying for a mortgage on a similar monthly cost as your rent, you will know whether you can afford to keep up with the repayments.

It is important to budget and ensure you can afford the borrowing you take out.

Do I Need a Higher Mortgage Deposit if I Have a History of Rental Arrears?

Possibly, yes. Lender deposit requirements increasewith any perceived risk - that includes your credit score and affordability calculations.

Most lenders require a 15% deposit, although you can get a UK mortgage with as little as a 10% or even 5% deposit.

What Mortgage Can I Get with Rental Arrears on my Credit Report?

The maximum you can borrow depends on what you earn, and most lenders will offer up to four times your annual salary.

Some lenders offer up to five times your income, or even up to six times, depending on the scenario.

Suppose you have a complex application with issues such as a variable income and credit issues. In that case, the best bet is to contact an independent broker who can recommend lenders who will consider your application.

Can a Good Rental History Help with a Non-Standard Property Mortgage?

Yes, if you have always paid rent on time and have a good credit report, there is a better likelihood that you will be offered competitive mortgage terms.

Non-standard properties tend to be more expensive to mortgage against since they are considered a higher risk, and include homes such as:

  • A listed building.
  • Flats in high rises.
  • Ex-council properties.
  • Homes that aren't currently habitable.
  • Unusual constructions.
  • Concrete properties.
  • Flats with balcony access.
  • Timber-framed homes.

Would Late Rental Payments Impact a BTL Investment Mortgage?

It's possible, yes - because if you have any bad credit issues, you are less likely to be approved for mortgage lending.

This will depend on the lender, their attitude to credit report assessments, and how much you're looking to borrow.

Can I Get a Retirement Mortgage with Rental Arrears?

Getting a mortgage in retirement, or approaching retirement, is always trickier than at a younger age. Having credit issues alongside that can complicate the matter further.

The good news is that some lenders cap mortgages at 75 or age 85, whereas others have no cap whatsoever.

For help finding later life mortgages, even where credit issues exist, give us a call on 0330 304 3040.

How Will Rental Arrears Impact My Second Home Mortgage Application?

Lenders tend to be stricter about second home mortgages since they need to know you can repay the loan, as well as the existing mortgage on your primary property.

Any affordability issues can be a deal-breaker, so it's essential to consult an expert broker before you make an application.

Expert Advice with Mortgages and Credit Issues

Business loan broker have years of experience negotiating competitive mortgage lending in any number of circumstances - including all manner of credit issues.

If you've been in rental arrears and are worried about getting the mortgage lending you need, or have been rejected elsewhere, give us a call on 0330 304 3040, or email the team at [email protected] to organise a private chat.

Further Reading

PROCESS

Explore Our Presence

Securing an excellent mortgage offer with Revolution Finance
Brokers couldn't be easier:

cityam
dailyexpress
dailymail
standard
FT Advisor
LBC
The Guardian
Independent
Metro
Mortgage Introducer
Sky News
The Sunday Times
Yahoo
This is Money
Mirror
LBC
The Sunday Times
PROCESS

Revolution Mortgage Brokers:
100% Independent & Whole-of-Market

As specialist mortgage brokers for a huge variety of applicants, the whole-of-market consultants at Revolution provide access to an exceptional range of lenders, products and mortgage deals. That means you get the advantage of professional negotiation and broker-exclusives through an established lending network to ensure we always find you the most competitive mortgage available.

REFERRALS

Refer, Relax, and get £50

Ask the Expert
Mortgage Brokers

Revolution Brokers
What can we help you with today?
Do you have a particular timescale in mind?
Next
Which situation from the below list best matches your requirements? *
Could you tell us the market value of the property?*
Please let us know a rough idea of your yearly income (before tax) for all applicants? *
Back
Next
Primary applicant name *
Contact email address *
Best contact number *
Back
Next