Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Near Prime Mortgages Serve Borrowers With Thin Credit Files
Near prime mortgages are often associated with borrowers who have experienced repayment issues in the past, but recent findings indicate that this is not the only group making use of these products. According to a report by Mortgage Solutions, a significant number of near prime borrowers are those with limited credit histories, rather than those with adverse credit events.
The latest Near Prime Index, published in April and covering broker experiences from the second half of 2025, found that around 15% of brokers identified a lack of extensive credit history as the main reason clients fell into the near prime category. This issue is particularly pronounced among first-time buyers, with over a quarter of brokers reporting it as a specific challenge for this group.
Credit agency Experian has analysed that up to five million people in the UK are effectively invisible to the credit system due to a lack of comprehensive credit profiles. This lack of data can significantly impact their ability to access borrowing, including mortgages. The report notes that without alternative routes to finance, these individuals risk being excluded from homeownership.
The article also highlights the importance of incorporating additional data sources, such as rental history, when building a credit profile. This could help more people access mortgage products and improve their credit status over time.
For letting agents and inventory clerks, these findings underline the growing relevance of rental payment data in the mortgage application process. As the industry moves towards recognising a wider range of credit information, rental history may play a more significant role in helping tenants transition to homeownership.
Source: Mortgage Solutions