Netflix and spotify subscriptions could help first-time buyers get a mortgage

LEEDS BUILDING SOCIETY WILL BEGIN OFFERING BORROWERS THE OPPORTUNITY TO BOOST THEIR CREDIT SCORES 15:11, 10 May 2023 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. READ MORE: JOIN THE FREE MANCHESTER EVENING NEWS WHATSAPP COMMUNITY 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. Article continues below 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 spend most of their earnings on rent and other regular payments. Indeed, the vast majority of existing Boost users are renters. “Housing is at its least affordable point since

our founding year in 1875, a sad indictment of decades of inertia over the UK’s housing crisis. But we will continue to find ways we can help and put homeownership within reach of more

people, just as we have for almost 150 years.” Sigga Sigurdardottir, managing director of consumer services at Experian, said: “Our partnership with Leeds Building Society further supports

Experian’s mission to improve financial inclusion for consumers. As many people across the UK face barriers to homeownership, we’re delighted that Boost users can now use their boosted

scores to help them get on the ladder, making that dream of home ownership more accessible for people across the UK.” Leeds Building Society clarified that customers can opt-in and out of

the Boost service at any time. READ NEXT: Article continues below