Nationwide to use CreditLadder for mortgage test

HM Treasury-backed rent reporting service CreditLadder and the UK’s largest building society have joined forces to help first-time buyers move on to the property ladder.

The relationship enables would-be homeowners to be prompted if they are eligible to apply for a Nationwide mortgage. Users will then be directed to discuss potential options with Nationwide’s mortgage consultants to help them through the process. Nationwide helped nearly one-in-five first-time buyers in the UK into a home of their own last year.

CreditLadder can analyse the income and expenditure data of its users and overlay them against Nationwide’s qualifying mortgage criteria. Those who meet the criteria are then able to contact the building society to potentially apply for a mortgage. While there is no guarantee users will be accepted for a mortgage with Nationwide, those who do not qualify will still receive periodic checks to see if their circumstances have changed.

“Tenants already using the CreditLadder service do so to improve their credit rating as well as looking to increase their chances of being approved for a mortgage,” said Sheraz Dar, CEO of CreditLadder.

“With the service already live, the relationship is the first of its kind between a rent reporting service and a mortgage provider in the UK. Working with Nationwide Building Society is a key plank in our plans to help those who dream of owning their own home to realise their aspirations.”

Greg Michel, Fintech and Insurtech Lead from Tech Nation, which is supported by UK Government, said, “It’s great to see CreditLadder grow as a business and find yet another way to help people reach their life goals by improving their credit score. We are proud to have them as alumni of our first ever Tech Nation Fintech programme.”

CreditLadder is the UK’s first and biggest rent recognition platform that enables renters to add their payments to their credit history. Tenants have their rent payments read by CreditLadder using Open Banking enabled APIs, the interface between different software. This allows the tenant to have their rental payment track record added to their credit file, and ultimately help improve their credit score.

CreditLadder works with leading credit reference agency Experian and since launch has reported over £50m in rent. This year the company was announced as a final stage winner of both the HM Treasury’s Rent Recognition Challenge and became one of 20 companies chosen from nearly 100 applicants to join the HM Treasury-supported Tech Nation fintech programme.

CEO Sheraz Dar has worked at and invested in many of the UK’s leading digital businesses including PrimeLocation, Quidco and OpenRent; the latter being the UK’s biggest letting agent by volume.

Watch Sheraz Dar present at our recent Trend Talk in Birmingham.