In a groundbreaking move, Leeds Building Society has partnered with Experian to integrate its free Experian Boost service into their mortgage application assessments.
This innovative approach means that regular debit payments from the past 12 months, such as council tax or subscriptions to digital services like Netflix or Spotify, can contribute to applicants’ credit scores and influence mortgage applications.
The Experian Boost service utilises open banking to link borrowers’ current account payments to their credit score, which is then incorporated into the Society’s lending systems.
In preliminary tests, 7.5% of Society applicants saw an improvement in their credit score by employing Experian Boost.
With over 800,000 customers, Leeds Building Society aided 18,000 people in becoming first-time homeowners last year. The Society offers mortgages up to 95% of a property’s value, both for outright purchase and shared ownership mortgages. Applications for these mortgages will also benefit from enhanced credit scores.
Leeds Building Society has focused its lending services on first-time buyers, even ceasing lending on residential second homes last year. It has also proposed a series of public policy measures to combat the homeownership crisis.
“We’re proud to be the UK’s first mortgage lender to simplify the process for aspiring homeowners by including free, ‘boosted’ credit scores,” said Richard Fearon, chief executive at Leeds Building Society. He emphasised the potential benefits for younger borrowers, first-time buyers, and those on lower incomes who often struggle to build a good credit score due to high living expenses.
Fearon added: “Housing is at its least affordable since our founding year in 1875, a sad reflection of decades of inaction on the UK’s housing crisis. We will continue to find ways to make homeownership more accessible, as we have been doing for nearly 150 years.”
Sigga Sigurdardottir, managing director, consumer services at Experian, expressed enthusiasm about the collaboration, adding: “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.”
