Mortgage Insurance Calculators About How it Works
   Back | 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
   Back | Insurance
   Back | Calculators
   Back | Your Mortgage Position
Your Mortgage Position
Bad Credit
Buy to Let
Development Finance
Self Employed
Mortgage for professionals
Lifetime Mortgages
Expat mortgages
Interest Only
Mortgage Affordability
Mortgage Application
Income Types
Residential Mortgages
Commercial Mortgages
Property Types
First Time Buyers
Mortgage Declined
Offset Mortgage
   Back|Bad Credit
   Back|Buy to Let
   Back|Self Employed
   Back|Expat Mortgage
   Back|Interest Only
   Back|Income Types
   Back|Property Types
   Back|Other Mortgages

Finding a Mortgage Offer After Rental Arrears

If you have fallen into rental arrears in the past, will it appear on your credit record, and what happens if you decide to buy and need to apply for a mortgage?

Discover What Our Customers

Have to Say!
Our Customers
Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

Almas Uddin2023-05-09
twitter  linkedin  

Finding a Mortgage Offer After Rental Arrears

Trying to get into the property ladder with a history of rental arrears can be extremely frustrating. Credit issues can remain on your file for years, and so you might find that arrears from several years ago continue to make it hard for you to find mortgage approval.

Here we'll explain how rental arrears can impact your mortgage application - and what you can do to improve your chances of mortgage approval.

If you have been turned down for a mortgage, or want to check out the most competitive rates on the market, give the Revolution team a call on 0330 304 3040 or drop us a message at [email protected].

How Do Rental Arrears Impact my Credit Report?

Landlords may record your rental remittances and forward the history of those payments to the credit referencing agencies. In most cases, this system is designed to make it easier for tenants to build up a credit score and improve their ability to find a mortgage.

The Rental Exchange Scheme was set up in 2016 and means that landlords can include private rental payments in your credit file to prove a history of reliable payments.

Not all landlords are part of the scheme. For those that are, you pay Credit Ladder directly; they record the transaction and pass the cash onto your landlord.

Another aspect of this scheme is that it assists landlords who struggle with non-payments from tenants. Therefore, they can run a credit report and see if new tenants have repeatedly fallen behind with their rent before.

If you have fallen into rental arrears, it may show on your credit report when applying for a mortgage if you rent from a landlord who is part of the scheme.

Why Revolution Brokers?

Whole of market brokers Whole of market brokers

Mortgage that suits you Mortgage that suits you

On time customer support On time customer support

What Other Bad Credit Problems will be Flagged on my Credit File?

Mortgage lenders will always need to run a credit report before deciding if they can offer to lend to you.

Issues that your file will record include:

If you have several credit issues, the best option is to consult an independent broker who can negotiate with bad credit lenders on your behalf.

What Mortgage Can I Apply for with a Rental Arrears History?

It's always advisable to consult an independent broker to assess your affordability before applying for a mortgage.

A lot depends on your income and whether you have other debts to bear in mind. One useful tool is to look at what you're paying in rent and calculate how switching to a monthly mortgage will impact your available finances.

Most mortgage providers will lend up to four times your annual income. Some will offer a higher multiple, but only if you meet their other lending criteria and don't have any severe credit issues.

What Level of Deposit Do I Need for a Rental Arrears Mortgage?

The majority of lenders offer residential mortgages up to 85% Loan to Value, which means you will need a 15% deposit. There are specialist mortgages with a smaller deposit available through a whole-of-market broker.

If you have a bad credit issue on your file, you're likely to require 15% to 25% to offset the lender's perceived risk.

Can I Get a Rental Arrears Mortgage on any Property?

Lenders prefer to mortgage standard properties built from bricks and mortar. Non-standard properties are at higher risk because they are harder to sell in a repossession scenario.

If you have rental arrears on your credit file and wish to buy a property in the following categories, you will almost certainly need help from a broker to negotiate a mortgage on your behalf:

  • Listed buildings.
  • Ex-council properties.
  • High rise flats.
  • Concrete buildings.
  • Timber-framed houses.
  • Flats with access through a balcony.

Can I Get a Mortgage on a Non-Residential Property with Rental Arrears?

Potentially, but again it all depends on whether you can prove affordability and whether there are any other issues on your credit report.

You can usually find buy to let mortgages, provided the rental income from the property will comfortably cover the mortgage interest charges.

There are also options for second home mortgages, even with credit issues, although the lending criteria tend to be stricter, so you will usually need a sizable deposit.

Can I Get a Retirement Mortgage After Rental Arrears?

Some lenders have upper age limits on who they will offer a mortgage to - that might be 75 or 85, there might be no limit, and it might apply at the time of the application or when the mortgage term is due to end.

Bad credit and a higher age create two increased risk factors, so it is vital to work with an independent broker who can identify which lenders will be able to consider your application.

Professional Help with Finding a Mortgage After Rental Arrears

Mortgage advisors are a professional, independent team working with thousands of people across the UK who have experienced rental arrears and now wish to get on the property ladder.

The right lender for you depends on multiple criteria, and so we work with you to understand your circumstances to ensure you get the most competitive mortgage offer in place.

Give us a ring on 0330 304 3040, or email the team at [email protected] to arrange a good time to talk.

Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

twitter  linkedin  

Further Reading

Explore Explore Our Presence Our Presence

Explore Explore Our Presence Our Presence

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

Revolution Mortgage Brokers:100% 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.

Refer, Relax

andget £50get £50
We are proud
members of the:
Refer, Relax

FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature.

We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

Ask the Expert
Mortgage Brokers

Revolution Brokers
What can we help you with today?
Do you have a particular timescale in mind?
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? *
Primary applicant name *
Contact email address *
Best contact number *