New scoring system affects millions of borrowers across Wales and the UK

A MAJOR overhaul of the way credit scores are calculated is being rolled out this month, with Experian announcing sweeping changes to how lenders assess borrowers.

For the first time, rental payments will be included in credit score calculations, meaning tenants who consistently pay rent on time could see an improvement to their overall score.

The update is part of Experian’s move to “better reflect modern financial behaviour,” taking into account regular bills, mobile phone payments, and overdraft use.

Expanded scoring system

The company is also expanding its credit score range from 0–999 to 0–1,250, giving lenders what it calls a more detailed picture of consumers’ financial habits.

The five score bands — previously labelled from “very poor” to “excellent” — will be renamed, with Experian dropping negative colour coding such as red to make the system “less distressing” for users.

Although the changes are not expected to affect people’s actual eligibility for mortgages, loans or credit cards, more than 40% of people are likely to move down a band after the recalibration, while around 42% will move up.

Everyday spending patterns

As part of the update, Experian will start to recognise behaviours that lenders increasingly value, including cutting back on overdrafts, avoiding cash advances on credit cards, and making mortgage overpayments.

Other data such as mobile phone payments, broadband subscriptions, and switching frequency between providers will also be factored in.

Edu Castro, Managing Director of Experian Consumer Services UK & Ireland, said: “The way people manage their money has evolved, and our score has evolved too.
Paying rent on time or reducing overdraft use are now meaningful indicators of good financial management.”

Automatic updates

The new system will be introduced gradually from November 2025, with all UK customers expected to transition by the end of next year. Existing users will see their updated score automatically reflected in their accounts.

A higher score generally means access to better borrowing rates, while a lower score can affect the ability to secure credit. Experian said the update aims to give people “a clearer understanding of their financial position and more ways to improve it.”

Financial adviser says Bank of England could even raise rates again if prices remain stubborn

WELSH households already struggling with high living costs could face a longer period of financial pressure, as one of the world’s largest financial advisory firms warns that inflation risks becoming “entrenched” in the UK economy.

The deVere Group, which has offices in Cardiff and across the UK, says that disappointing productivity and strong wage growth are combining to keep prices high — with the Bank of England now unlikely to cut interest rates before the middle of 2026.

Chief executive Nigel Green said: “The latest inflation data should set alarm bells ringing. Inflationary pressures are proving far more resistant than hoped.”

The UK’s annual inflation rate remained unchanged at 3.8% in September — almost double the Bank’s 2% target — while core inflation sits near 3.5%.

Mr Green said that wage increases in many sectors continue to outpace productivity, pushing up prices for goods and services.
“When wages rise faster than productivity, prices follow. This is how inflation becomes embedded – not as a short-term shock, but as a feature of the system,” he added.

He warned that investors are being overly optimistic about future rate cuts.
“The Bank of England cannot credibly loosen policy while inflation sits almost double its target,” he said. “Rates are likely to remain at current levels until well into 2026. There’s even a chance that the next move will be upward rather than down.”

In Wales, where mortgage holders and small businesses have already been hit hard by rising borrowing costs, any delay in rate cuts could deepen financial strain. Many Welsh homeowners are still coming off fixed-rate deals agreed before the cost-of-living surge, leading to sharp increases in repayments.

Mr Green said the UK is now caught in a “policy trap” of slow growth and stubborn inflation. GDP expanded by just 0.1% in August, while inflation shows little sign of easing.

He added that the forthcoming UK Autumn Budget will play a crucial role.
“If the Chancellor opts for tax cuts or measures that boost demand, the central bank will have no choice but to stay on hold for longer,” he said. “Fiscal and monetary policy are now locked in a delicate balancing act.”

With inflation threatening to become a long-term problem, he warned against complacency.
“If inflation is allowed to harden, it risks becoming a self-perpetuating cycle — one that could take years to unwind, as it did in the 1970s.”

The deVere Group believes monetary policy will remain “restrictive for far longer than most anticipate,” meaning that Welsh families and businesses should brace for higher borrowing costs throughout 2025 and into 2026.

A PEMBROKESHIRE couple have bought their first home together at Lovell Homes’ new Augustus Grange development in Haverfordwest, after previously living with their parents.

Flavia Jenkins, 22, and Tom Meredith, 25, moved into a three-bedroom Lambourne-style home earlier this year after deciding it was time to take the plunge and get onto the property ladder.

Flavia, who works as a teaching assistant, said: “We both lived with our parents prior to buying this home and were keen to take the plunge and buy our first home together, so we set a target for each month and year that we wanted to save to make sure we could achieve our goal.”

Tom, a rugby development officer, added: “We chose a new build as we wanted a blank canvas that we could make our own and put our own stamp on. We bought with Lovell Homes as we felt they were a quality company that took pride in what they do. Augustus Grange stood out to us as we were impressed by the quality finish of the homes and how spacious not just the house, but the development is.”

The couple purchased their property using the Help to Buy Wales scheme, which was due to end in March 2025 but has now been extended to September 2026. The scheme helps people step onto or move up the property ladder by allowing buyers to purchase a new-build home with just a five per cent deposit. The remaining cost is made up of a 75 per cent mortgage and a 20 per cent equity loan, which is interest-free for the first five years.

Flavia said the Lovell team were supportive throughout the buying process: “The process went as smoothly as it could. Our sales executive, Adrienne, was really good and communicated well with us, and we would definitely recommend Lovell Homes to family and friends.”

Now settled in their new home, the couple say they are delighted with their choice. Tom said: “We chose the Lambourne-style home as it is spacious and has a lovely garden. We really like the layout of the house, as it’s a good size that suits what we wanted. The local area is ideal too, and it definitely feels like we are in an up-and-coming area. We’re incredibly happy with our choice and love coming home and being in our own space.”

Augustus Grange, located off St David’s Road, is a mixed-tenure development being delivered with Pobl Group, providing a total of 115 two and three-bedroom homes just six miles from the Pembrokeshire Coast National Park.

To find out more about Augustus Grange, visit newhomes.lovell.co.uk/developments/augustus-grange-haverfordwest or call 01437 468 024. The development is open seven days a week from 10:00am to 5:00pm.

This year, Lovell Homes achieved Gold for customer service with In-House Research, with an impressive 95.5 per cent of customers saying they would recommend Lovell to family and friends.