The FCA is exploring how verified financial information and open finance could improve the mortgage journey, including whether rental-payment histories could play a greater role in affordability assessments. This is especially relevant as first-time-buyer affordability is reported to be at its most squeezed point since 2008, despite some lenders extending borrowing capacity.
For advisers, consented rent and transaction data could help build a more complete picture of payment behaviour and support conversations with clients who have thin traditional credit files. AI may help categorise income and spending data and identify evidence gaps, but the resulting assessments must be transparent, fair and carefully tested for bias. Clients should understand what data is used, why it is relevant and how to correct inaccurate information.