Netflix and Spotify subscriptions could help first-time buyers get a mortgage
Hopeful homeowners could now increase their chances of getting a mortgage with a Netflix or Spotify subscription due to a new partnership.
Leeds Building Society has joined up with credit information company Experian to link to its free Experian Boost Service. The service allows borrowers to use extra evidence to prove a good financial record that can be used in lending decision.
It means regular debit payments over the last 12 months related to subscriptions to digital entertainment services can now contribute to credit scores and be factored into mortgage applications to the Society. The service is rooted in open banking technology which links a borrower's current account payments to their credit score.
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Leeds Building Society said that during testing, 7.5 per cent of Society applicants would have gained an improvement in their credit score by using Experian Boost. It comes after Skipton Building Society announced a new zero-deposit mortgage aimed at renters who aspire to be first-time buyers.
Leeds Building Society has more than 800,000 customers and last year it claimed to help 18,000 people onto the housing ladder. It lends up to 95 per cent of the value of a home both for outright purchase and shared ownership mortgages - applications which will also be eligible for boosted credit scores.
Richard Fearon, chief executive at Leeds Building Society, said of the new announcement: “This will particularly help younger borrowers, first-time buyers and anyone on lower incomes who face the toughest challenge to prove their ability to repay.
“Often through no fault of their own, these groups can struggle to build a good credit score because they need to