Leeds Building Society teams up with Experian to use non-traditional financial data for mortgage applications, helping first-time buyers with limited credit history.

A recent collaboration between Leeds Building Society and Experian could give aspiring homeowners a helping hand in securing a mortgage. Through the new partnership, applicants will be able to use evidence of their regular payments for services like Netflix or Spotify to improve their credit score, potentially making it easier for them to purchase a home.

Leeds Building Society has integrated with Experian’s free Experian Boost service, which allows additional financial data, such as consistent payments for council tax and digital subscriptions, to be factored into the credit assessment process. This offers a new opportunity for borrowers who may not have a traditional credit history, as it brings more of their positive financial behaviour into the lending decision.

The service uses open banking technology, which securely connects borrowers’ financial data to credit scores. By linking current account transactions to credit information, the system provides a more comprehensive picture of an individual’s financial track record. This can help those who have a limited credit history or struggle to build a strong credit score due to high living costs, such as rent.

Leeds Building Society reported that 7.5% of applicants had a higher credit score when using Experian Boost, improving their chances of securing a mortgage. This is particularly beneficial for younger borrowers or those on lower incomes who might otherwise find it difficult to prove their financial reliability.

This partnership aligns with the increasing number of innovative mortgage options aimed at first-time buyers. For instance, Skipton Building Society recently introduced a zero-deposit mortgage for tenants with a strong rental history, offering up to 100% of a property’s value. This makes homeownership more accessible to people who may struggle to save a large deposit.

Leeds Building Society, which has over 800,000 customers, has already helped thousands onto the property ladder, and this new service aims to support even more people in their quest to own a home. In addition to its work with first-time buyers, Leeds Building Society is focusing on making homeownership more attainable despite the ongoing UK housing crisis.

Richard Fearon, the Society’s Chief Executive, emphasised that this new initiative helps those who may find it hardest to prove their financial capability. “We will continue to find ways to help and put homeownership within reach of more people,” he said.

Sigga Sigurdardottir, Managing Director of Consumer Services at Experian, added that this partnership supports their goal to improve financial inclusion, making homeownership more achievable for many across the UK.