Having subscriptions to Netflix and Spotify might help aspiring homeowners get on the property ladder thanks to a new mortgage concept.
A bank in the UK called Leeds Building Society has partnered with Experian’s free Experian Boost. This would allow those who need to borrow money more opportunities to prove that they routinely keep a “financial track record.”
“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,” Richard Fearon, Leeds Building Society’s chief executive, told the publication.
“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,” he added.
Additionally, another bank called Skipton Building Society made a mortgage program that doesn’t need a deposit. “We recognise there’s a clear gap in the market for people who have a strong history of making rental payments over a period of time so can evidence affordability of a mortgage – but there is currently no solution for them to buy a property due to lack of savings or access to family wealth,” the company’s Charlotte Harrison noted.
While Spotify and the streaming platforms aren’t directly involved in the program, it still gives all those monthly subscriptions that we all pay possibly counting for something in the long run.