Gen H has announced the inclusion of Experian’s Score Boost data in their credit decisioning process, aiming to aid aspiring homeowners in qualifying for mortgages.
This move addresses a common barrier where potential buyers struggle with credit scores that fall short of lenders’ usual requirements.
Experian Boost considers regular expenses such as Netflix, Spotify, and council tax payments, typically not factored into credit scores, to demonstrate responsible financial behaviour. This can enhance users’ credit ratings, making homeownership more attainable for those previously excluded due to lower scores.
The company’s adoption of Score Boost distinguishes it among residential mortgage lenders, potentially enabling more customers who are below the traditional credit threshold to improve their scores sufficiently to purchase homes.
Customers can register with Experian for free and use open banking to report their recurring payments, with the assurance that Score Boost will not negatively affect their credit scores.
This initiative aligns with the evolving landscape of the mortgage market. A Zoopla survey indicates that younger homebuyers are open to alternative routes to homeownership, with 18% of 18- to 39-year-olds considering joint home purchases and 31% showing interest in part-ownership or government-backed schemes.
Gen H’s partnership with Experian complements their ongoing efforts to innovate in the mortgage sector, focusing on creating more flexible solutions for affordability and deposit support. These initiatives are designed to expand financial support access to a wider customer base.
Peter Dockar, chief commercial officer at Gen H, said: “We are working to remove the blockers faced by aspiring homeowners in this country – from income constraints to deposit constraints and now credit constraints – because in this market, buyers need all the help they can get.
“For some aspiring homeowners, Score Boost could be the difference between finally climbing onto the ladder or not.
“We’re already seeing cases in our pipeline that will benefit from the boosted credit scores.
“Buyers are commonly told to ‘just cancel Netflix’ to afford a mortgage. We say, don’t cancel it – keep it, report it, and use it to boost your credit.”
