The issue of mortgage affordability has been a hot topic for some years now. In the years following the financial crisis it seems affordability criteria have been tightened – perhaps to the point where even well resourced applicants find it difficult to obtain loans which, ostensibly, they should be able to afford.

An online petition on the UK Government & Parliament website recently brought this topic back into the spotlight. The petition, which invited signatories to call on the Government to ‘make paying rent enough proof that you are able meet mortgage repayments’ was set up by tenant Jamie Pogson of Devon. The petition had secured 145,200 signatures - at the time of writing - which meant that the Government must not only respond (after 10,000 signatures) but consider it for parliamentary debate (after 100,000 signatures).

Although this is ostensibly an owner occupier story it has implications for investors too. A loosening of affordability criteria could mean that more tenants are able to buy, reducing rental demand.

Before we go on, let’s take in some background. The number of signatories appears impressive, but it should be borne in mind that it has received extensive coverage in the press. Other than a high concentration of signatories in the petitioner’s own area there are no particular regional trends. Levels of signing in London, where one might expect high interest, are some of the lowest.

It’s true to say that current mortgage affordability rules do seem quite onerous, and perhaps even ambiguous. At one time a simple ‘3.5 x income’ guide was often used but the Mortgage Market Review of 2014 introduced a stricter regime, together with an element of stress testing. There are no actual laws on calculating affordability – it is still down to each lender. As well as income many lenders ask about existing debts, household costs, pension contributions, childcare and lifestyle spending. While they will probably ask about rent the fact this has been paid on time for many years won’t necessarily add any extra weight.

On the face of it this does seem illogical. The fact a tenant has been paying £1,000 monthly rent on time for many years is, perhaps, a good indication they will be able to pay a £1,000 mortgage repayment on time. Of course a tenant who becomes an owner-occupier will have additional expenses which as a tenant they did not.

Pete Ball, Personal Finance CEO of specialist lender Together feels lenders would be amenable to the idea. He says: “From a lender’s perspective, the more information that can be made available, the better. The rental market is continuing to grow, and it’s estimated that by 2025 there will be 7.2m households in the UK which are privately rented, so exploring ways that we can help those renters make the transition to taking their first step on the property ladder is something that I would image most lenders would welcome.”

But he adds: “It’s important to see the bigger picture here – this isn’t just about rental payments, but about recognising the growing number of those renting in the UK and the challenges they face when it comes to getting a mortgage. What this petition has done is highlighted the issue, but lenders have to consider a wide range of factors when assessing an application for a loan to ensure it’s both affordable and sustainable if interest rates rise. It’s not as simplistic as saying rental payments are the answer, but it is certainly something for lenders to think about in terms of whether we have all the information we need to assess applications, and whether there’s room for improvement that would assist on both sides.

“Some specialist lenders, like ourselves, will take rental payments into consideration. Typically we would ask for proof that the applicant has maintained rental payments for the past 12 months, and that would be considered as part of the application process.”

Government has just published its response, which is similar to a similar online petition set up in October 2016. It concludes by saying: “Beyond the Financial Conduct Authority’s requirements, decisions around the availability of individual mortgage loans remain commercial decisions for lenders, and the Government does not seek to intervene in these.

“Whilst one lender may be unable to offer a mortgage, being denied a mortgage from one provider does not preclude a customer from being offered credit elsewhere. There are a wide variety of mortgage products available in the UK and prospective borrowers may benefit from shopping around.”