Open Banking for Rental Agreement Reference
Discussion
Question for people that have taken up a new rental recently. Hopefully you can shed some light on this Open Banking scheme.
I've just put an offer in for a house, which has been accepted by the landlord.
Paid the holding deposit and now progressing through the reference checks.
However, it seems that the estate agent uses a company that wants access to my bank account, through the Open Bank scheme. I never heard of this.
I've not had to be referenced checked for a rental for many years, the last time I went through checks I just needed to supply some bank statements and my ID.
So, how safe is this Open Bank scheme, they want to see affordability. How much access do they have?
Thanks
I've just put an offer in for a house, which has been accepted by the landlord.
Paid the holding deposit and now progressing through the reference checks.
However, it seems that the estate agent uses a company that wants access to my bank account, through the Open Bank scheme. I never heard of this.
I've not had to be referenced checked for a rental for many years, the last time I went through checks I just needed to supply some bank statements and my ID.
So, how safe is this Open Bank scheme, they want to see affordability. How much access do they have?
Thanks
My son is renting and had this situation come up recently - I am his guarantor and the rental company wanted access to my accounts.
I refused and paid the whole 12 months for him, which he will pay back monthly. Obviously not practical for everyone - but the rental guarantee company had awful reviews and I really didn't want them having any access.
I refused and paid the whole 12 months for him, which he will pay back monthly. Obviously not practical for everyone - but the rental guarantee company had awful reviews and I really didn't want them having any access.
NDA said:
My son is renting and had this situation come up recently - I am his guarantor and the rental company wanted access to my accounts.
I refused and paid the whole 12 months for him, which he will pay back monthly. Obviously not practical for everyone - but the rental guarantee company had awful reviews and I really didn't want them having any access.
That's interesting as we tried the same and they wouldn't allow it. I refused and paid the whole 12 months for him, which he will pay back monthly. Obviously not practical for everyone - but the rental guarantee company had awful reviews and I really didn't want them having any access.
I wouldn't mind so much if the landlord was renting out a showhome but it's a stbox in Clapham and for the rent he's charging he should be prepared to take some risk on.
mrmistoffelees said:
It's read only.
Be careful! Open Banking allows for a Payment Initiation Services Provider to requesr a payment on the account holder’s behalf, which their bank then presents to the customer (e.g. through their banking app) for authorisation.
I recommend that the OP read this website - https://www.openbanking.org.uk/what-is-open-bankin... - and speak with their bank if they’re not entirely comfortable.
MadCaptainJack said:
e careful!
Open Banking allows for a Payment Initiation Services Provider to requesr a payment on the account holder’s behalf, which their bank then presents to the customer (e.g. through their banking app) for authorisation.
I recommend that the OP read this website - https://www.openbanking.org.uk/what-is-open-bankin... - and speak with their bank if they’re not entirely comfortable.
Fair to point that out - should've clarified. I meant more that it's not akin to logging into your internet banking account, giving it to the estate agent and walking away. There's still, as you say, auth required to do anything useful.Open Banking allows for a Payment Initiation Services Provider to requesr a payment on the account holder’s behalf, which their bank then presents to the customer (e.g. through their banking app) for authorisation.
I recommend that the OP read this website - https://www.openbanking.org.uk/what-is-open-bankin... - and speak with their bank if they’re not entirely comfortable.
MadCaptainJack said:
mrmistoffelees said:
It's read only.
Be careful! Open Banking allows for a Payment Initiation Services Provider to requesr a payment on the account holder’s behalf, which their bank then presents to the customer (e.g. through their banking app) for authorisation.
I recommend that the OP read this website - https://www.openbanking.org.uk/what-is-open-bankin... - and speak with their bank if they’re not entirely comfortable.
We had this when we rented a flat back in 2019 - I thought it looked iffy, and HSBC confirmed that we shouldn't do it.
We provided some PDF statements and payslips, all was fine.
in theory and according to the open banking website it can work, but estate / letting agents aren't the most trustworthy sector - who knows what could end up happening.
We provided some PDF statements and payslips, all was fine.
in theory and according to the open banking website it can work, but estate / letting agents aren't the most trustworthy sector - who knows what could end up happening.
Open Banking is an API with a complex security layer on top. You authorise the level of access someone has to your account. The request I assume is being run through a third party app, so they would not be asking for permission to initiate payments or anything else. There is a specific element of the API that is intended for allowing quick and easy credit checks, it's intended to allow businesses to manage the risk in extending lines of credit to their customers.
I would have a look at that part of the API and see what it actually returns. It may not return any transaction data at all, just a score, but I haven't accessed that part of the API to see what is available there.
I would have a look at that part of the API and see what it actually returns. It may not return any transaction data at all, just a score, but I haven't accessed that part of the API to see what is available there.
bunchofkeys said:
Thanks for the input.
Unfortunately EA Hamptons won't accept the 12 months up front, just asked, and they won't accept the paper reference. It's all through this open banking or nothing, and I would have wasted the holding deposit.
That's interesting.Unfortunately EA Hamptons won't accept the 12 months up front, just asked, and they won't accept the paper reference. It's all through this open banking or nothing, and I would have wasted the holding deposit.
I find it hard to see why Hamptons would refuse the full payment on what I assume is a 12 month contract. Paying the full 12 months would negate any need (and the purpose) for financial references.
I wouldn't want any third parties (particularly those associated with a rental guarantee) having access to my accounts. I guess I'd try to open a new account just for this purpose.
bunchofkeys said:
Thanks for the input.
Unfortunately EA Hamptons won't accept the 12 months up front, just asked, and they won't accept the paper reference. It's all through this open banking or nothing, and I would have wasted the holding deposit.
What did the terms and conditions state when you paid the holding deposit? if it doesn't mention Open banking or similar then I would give them the choice of using another acceptable method of checking your accounts or refunding your money.Unfortunately EA Hamptons won't accept the 12 months up front, just asked, and they won't accept the paper reference. It's all through this open banking or nothing, and I would have wasted the holding deposit.
NDA said:
That's interesting.
I find it hard to see why Hamptons would refuse the full payment on what I assume is a 12 month contract. Paying the full 12 months would negate any need (and the purpose) for financial references.
I wouldn't want any third parties (particularly those associated with a rental guarantee) having access to my accounts. I guess I'd try to open a new account just for this purpose.
Same with us a couple of years agoI find it hard to see why Hamptons would refuse the full payment on what I assume is a 12 month contract. Paying the full 12 months would negate any need (and the purpose) for financial references.
I wouldn't want any third parties (particularly those associated with a rental guarantee) having access to my accounts. I guess I'd try to open a new account just for this purpose.
Think that was foxtons
NDA said:
bunchofkeys said:
Thanks for the input.
Unfortunately EA Hamptons won't accept the 12 months up front, just asked, and they won't accept the paper reference. It's all through this open banking or nothing, and I would have wasted the holding deposit.
That's interesting.Unfortunately EA Hamptons won't accept the 12 months up front, just asked, and they won't accept the paper reference. It's all through this open banking or nothing, and I would have wasted the holding deposit.
I find it hard to see why Hamptons would refuse the full payment on what I assume is a 12 month contract. Paying the full 12 months would negate any need (and the purpose) for financial references.
I wouldn't want any third parties (particularly those associated with a rental guarantee) having access to my accounts. I guess I'd try to open a new account just for this purpose.
Personally I think OB is too intrusive (and you'd want to ensure that it wasn't a condition that you had to provide it on an ongoing basis). Your bank should be able to provide a certified copy of recent statement which should more than suffice.
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