HM Treasury has launched a Fintech competition to use rental payment data to improve credit scores and mortgage applications for the 11 million renters in the UK. HM Treasury is offering £2 million to entrepreneurs who can develop an application that will enable Britain’s renters to record and share their rent payment data, helping to improve their credit scores and their chances of getting a mortgage.
The Challenge, part of the Autumn Budget, was launched this week by the Economic Secretary to the Treasury, Stephen Barclay at the Fintech Connect Live conference.
Winning bids to the Rent Recognition Challenge will be selected by a panel of Fintech sector leaders. The competition will provide an initial round of funding to six proposals to help to turn the ideas into a workable product. Then a handful of teams will be selected who will receive further funding and to bring their ideas to market.
Barclay said that people’s month rent is typically their largest expense and without a good credit score it can be tough to get a mortgage;
“Most lenders and Credit Reference Agencies are unable to take rental data into account, because they don’t have access to it. The Rent Recognition Challenge will challenge firms to develop an innovative solution to this problem and help to restore the dream of home ownership for a new generation.”
The Challenge will open to applications in the New Year and development will conclude in October 2018. Individual inquiries may contact HM Treasury here.