A new mortgage concept dreamt up by Leeds Building Society means that aspiring homeowners might be able to use their Netflix subscriptions to get on the property ladder. The building society has joined forces with Experian’s free Experian Boost Service to introduce a new way for young borrowers to build a good credit score.
The news comes shortly after Skipton Building Society – also in Yorkshire – announced the launch of a new mortgage that does not require a deposit. Under the Leeds Building Society plan, aspiring homeowners will engage in mortgage meetings to consider factors of the applicant’s financial history, including a look at the previous 12 months of regular direct debit payments. This can include council tax but also Netflix subscription payments.
Leeds Building Society chief executive Richard Fearon said: “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.” [quotes via The Independant]
Of course, there are other factors to be considered when assessing an individual’s mortgage application, including income, overall financial stability, and employment status. Either way, banks are needing to find new ways to attract new interest in property, as housing is currently at its least affordable point since 1875.
