Three new tech start-ups backed by government could help renters with no credit rating improve their chances of getting a mortgage.
CreditLadder, Bud and RentalStep have each won a share of a £2m prize fund as part of the government’s Rent Recognition Challenge.
The challenge saw entrepreneurs pitch systems and platforms for renters to record and share their rent payment data to help them improve their credit score.
The three winners will use their funding to further develop their businesses.
John Glen, economic secretary to the Treasury, said: “Monthly rent is often the biggest expense that people face, yet most lenders are unable to take it into account when working up a credit score.
“Three pioneering start-ups have found a solution and we are giving them the investment and support they need to help millions of renters across the country achieve their dream of owning a home.”
