FINTECH firms, including lenders, can win a £2m prize for developing a solution for rental payment history to be recognised in credit scores and mortgage applications.
The Treasury is holding the competition, which was mentioned in Wednesday’s Budget, as part of its measures to help first-time buyers get on the property ladder.
“Mortgage lenders and credit reference agencies are often unable to take rental payment history into account as they do not have access to this data,” it said. “This competition will support firms to solve this problem.”
Credit agency Experian is trialling a rental payment data solution with Big Issue Invest, the social investment arm of The Big Issue Group.
A Treasury spokesperson told Peer2Peer Finance News that they are encouraging fintech firms “to find a more stable solution” that could be adopted by all credit providers.
The competition is launching soon, with the winner to be decided by a panel of judges, but no exact timeframe has been confirmed.
Anyone can enter, including lenders, credit agencies and web developers, the spokesperson said.
The Treasury also said in Wednesday’s Budget that it is launching a consultation on the barriers that landlords face when offering longer tenancies.