Renters who have consistently paid their rent on time could have more options for buying their first home than they realise, according to a mortgage expert. Joseph Lane, specialist mortgage broker at Mortgage Lane, said a growing number of lenders are looking beyond traditional affordability measures and taking rental payment history into account when assessing some mortgage applications.
New Mortgage Products Recognise Rental History
The approach can help eligible renters who may not have built up a large deposit but can demonstrate a strong record of meeting their monthly housing costs. Lane said many renters assume they are years away from home ownership because they have struggled to save while paying high rents. He explained some newer mortgage products allow lenders to review an applicant's rental payment history alongside other financial information when assessing affordability.
Lane said: “One of the most common statements I hear from renters is, ‘I would love to buy, but I don’t have a deposit’. In truth, traditional advice is outdated and it’s pointless advising renters to save harder, as it ignores the fact that they are likely to be paying more in rent than they would be in a mortgage. What is worth noting is that there are now avenues to the property ladder that simply were not an option a decade ago.”
Average Age of First-Time Buyer Rises to 33
According to Halifax, the average age of a first-time buyer is now 33, the highest level in two decades. Alongside checking whether rental payment history could help support a mortgage application, Lane said prospective buyers should also make sure they understand lender criteria before beginning a property search. He said many people spend months browsing homes online before finding out how much they may actually be able to borrow.
Lifetime ISA Offers Government Bonus
The mortgage broker also highlighted the benefits of a Lifetime ISA, which offers a 25% government bonus on savings for first-time buyers. Under current rules, savers can contribute up to £4,000 each tax year and receive a government bonus of up to £1,000 annually. Lane said renters should also regularly compare the cost of renting with potential mortgage repayments, particularly if they have recently faced a rent increase.
Practical Steps Toward Home Ownership
Other options he suggested include temporarily reducing housing costs through house sharing to build a deposit more quickly, or exploring whether buying with a sibling or trusted friend could make home ownership more affordable. He added many successful first-time buyers do not have perfect finances but have taken practical steps to understand the options available to them and prepare early.
Lane said: “Whether that's opening a Lifetime ISA, using a strong rental history to access newer mortgage products, reducing housing costs strategically, exploring family gifting opportunities, buying with a sibling or friend, or understanding lender criteria sooner, the route to home ownership is often much closer than people think.”
