Subscriptions to the likes of Netflix or Spotify could contribute to helping struggling first-time buyers get a mortgage. A new partnership between Leeds Building Society and credit information company Experian should allow extra evidence of a borrower’s good financial track record to be factored into lending decisions.
It means the previous 12 months of regular debit payments, such as council tax and subscriptions to digital entertainment services such as Netflix or Spotify, can now contribute to credit scores and be factored into mortgage applications to the Society. Open banking technology, which allows people’s information to be shared securely, sits behind the initiative.
Open banking is used to link the borrower’s current account payments to their credit score. This is then connected to Leeds’ lending systems.
