By: Jack Williams

Buying a home can be tough for young people who have high rental costs and little credit history. Leeds Building Society has come up with an innovative solution to help first-time buyers by considering Netflix and Spotify subscriptions during mortgage applications. This new approach aims to support those who are struggling to build a good credit score due to their financial circumstances. It might not be best to sacrifice all of your subscriptions to save for your deposit!

Leeds Building Society has teamed up with Experian's free Experian Boost service to use your regular subscription payments as a way to show your financial responsibility and ability to handle mortgage payments. By examining your 12-month history of consistent debit payments, including subscriptions to popular services like Netflix and Spotify, the building society can better understand your financial stability.

If you're young or buying a home for the first time, it can be tough to prove to lenders that you're capable of repaying a mortgage, especially when most of your income goes towards rent and other monthly expenses. Leeds Building Society's chief executive, Richard Fearon, wants to help individuals who have lower incomes and traditionally face challenges in proving their financial reliability.

Renting can create a cycle that makes it harder to save money and establish a strong credit history. However, Leeds Building Society's initiative offers a way out for those trapped in this cycle. By considering alternative payment commitments like your streaming service subscriptions, they provide an opportunity for you to demonstrate your financial discipline and improve your chances of becoming a homeowner.

Leeds Building Society's decision to consider your Netflix and Spotify subscriptions, along with other regular payment commitments such as council tax, represents a significant change in how mortgage applications are evaluated. This inclusive approach recognizes the challenges faced by young individuals, first-time buyers, and those with lower incomes, who often struggle to prove their ability to repay. We are happy to report, by embracing new assessment methods, lenders are empowering aspiring homeowners, removing obstacles, and creating a more accessible path to owning a home in the UK.