Leeds Building Society says that regular subscriptions to services such as Netflix or Spotify will be factored into its mortgage applications. 

The mutual has launched a partnership with financial services group Experian to accept the last 12 months of council tax payments and debit subscriptions for selected entertainment services towards its credit scoring. 

The tie-up between the lender and Experian’s Boost service uses open banking to link a borrower’s current account payments to their credit score, which is then connected to the society’s lending systems. 

During testing, 7.5% of the mutual’s applicants would have improved their credit scores using the new system, the firms say. 

Leeds Building Society chief executive Richard Fearon says: “We’re proud to be the first mortgage lender in the UK to make it easier for aspiring homeowners by incorporating free, ‘boosted’ credit scores. 

“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.  

“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. Indeed, the vast majority of existing Boost users are renters. 

“Housing is at its least affordable point since our founding year in 1875, a sad indictment of decades of inertia over the UK’s housing crisis. But we will continue to find ways we can help and put homeownership within reach of more people.” 

Experian managing director consumer services Sigga Sigurdardottir adds: “Our partnership with Leeds Building Society further supports Experian’s mission to improve financial inclusion for consumers.”