What the papers said about shared ownership and credit reports

Since its launch in 2013, the Help to Buy equity loan scheme has allowed thousands of struggling buyers to purchase a property. This will come to an end in March 2023, and experts in this weekend’s financial press predicted a subsequent increase in demand for shared-ownership properties. Shared ownership is a Government-backed scheme whereby buyers can purchase a share of a home (usually between 25% and 75%) and pay rent on the remainder. The homeowner can then buy further shares in the property over time, known as staircasing. Experts warned however that if this is to become the main route to home ownership for those with very limited deposits then the supply of available shared ownership properties will have to increase significantly. Elsewhere the Mail on Sunday revealed that more than 1 in 10 adults in the UK could be rejected for a mortgage because their credit report contains little or no history of them managing and repaying credit. Experian say being ‘invisible’ can have the same impact on your credit score as someone with arrears or defaults in their history. Steps can be taken to improve a credit rating however, including registering on the electoral roll, ensuring that some of the household bills are registered in your name, and potentially taking a suitable credit card to build some repayment history. Take a look at our guide to improving your score here.