"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."
Leeds Building Society has partnered with the Experian Boost service to help first-time buyers boost their credit scores when applying for a mortgage.
The last 12 months’ of regular debit payments, such as council tax and subscriptions to digital entertainment services like Netflix or Spotify, can now contribute to credit scores and be factored into mortgage applications to Leeds.
The service uses open banking to link the borrower’s current account payments to their credit score which is then connected to the Society’s lending systems. During testing, 7.5% of Society applicants would have gained an improvement in their credit score by using Experian Boost.
Richard Fearon, chief executive at Leeds Building Society, said: “We’re proud to be the first mortgage lender in the UK to make it easier for aspiring homeowners by incorporating free, ‘boosted’ credit scores.
“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.
“It is no coincidence that a building society is the first to offer this service – we were the original homeownership pioneers and I’m delighted we’re maintaining that tradition.”
Sigga Sigurdardottir, managing director of consumer services at Experian, added: “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.”
