Today I introduced a bill into the House of Commons. The Creditworthiness Assessment Bill is a simple but powerful change which would create a level playing field for 15 million renters to get fair access to credit.
At the moment, if you own your home and pay a mortgage, a lender will take into account your mortgage payments to assess your credit score to see how reliable you are to lend to. The higher your score, the better deal you get on loans, whether mortgage payments, car loans or even mobile phone plans. But if you were renting the very same home, these payments aren’t taken into account when determining your credit history.
The Creditworthiness Assessment Bill would change the law so that credit providers such as banks have to consider rental and council tax payments as part of your credit history. It will help the millions of reliable renters across the country. This is especially important for renters in our community, whose years of responsible payments should be taken into account in future mortgage or loan deals.
I'm campaigning with crossbench Peer, Lord Bird from the House of Lords and we already have cross party support. The Creditworthiness Assessment Bill has already been supported by the House of Lords and I now aim to get it passed by the House of Commons and into law.