Leeds Building Society has come up with a unique mortgage concept.
According to UK’s Independent, they’ve teamed up with Experian’s free Experian Boost service to help potential mortgagers showcase their financial track record in a rather unconventional way: by flaunting their Netflix and Spotify subscriptions!
That’s right, binge-watching your favorite shows and jamming to the hottest tunes might boost your chances of getting a mortgage.
Using Netflix and Spotify Isn’t The Only Unique Concept
Skipton Building Society, another player from Yorkshire, has joined the mortgage revolution with its own mind-blowing idea.
They’ve introduced a mortgage that doesn’t require a deposit.
So, how does the Leeds plan work?
During mortgage meetings, they’ll look at your financial history and consider the regular debit payments you’ve made over the past year.
And interestingly, those payments can include not only your council tax but also your beloved Netflix and Spotify subscriptions.
This is a wild new way of connecting with Leeds’s lending systems.
According to Richard Fearon, the chief executive at Leeds Building Society, this radical approach is here to help out the young, the first-time buyers, and those with lower incomes.
“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.”
Now, credit scores are just one piece of the puzzle when getting a mortgage.
Lenders also consider factors like employment status, income, and financial stability.
But why are banks resorting to such unconventional tactics?
Well, here’s the deal: the UK housing market is going through some serious turmoil, with affordability at its lowest point since 1875.
So, these financial institutions are feeling the pressure to come up with innovative ways to entice potential homebuyers.
Skipton Building Society is another forward-thinking company.
They introduced the Track Record Mortgage, a five-year fixed rate at 5.49% with a maximum mortgage term of 35 years.
And here’s the kicker: the plan is exclusively designed for first-time buyers with a solid history of making rent payments.
“It is time for a re-think on these massive barriers to home ownership, and we’re proud to take the lead on bringing to the market, solutions for such a massive social problem.”
These are plans American mortgage companies should implement to simplify home ownership.
They don’t have to use Netflix or Spotify to appeal to the current generation, but they can think of alternative ways.
So, let’s hope that home ownership will become more achievable in the near future!