Gen H has unveiled changes to its credit criteria that it claims will materially improve mortgage accessibility for aspiring homeowners.

The lender believes that an accidental missed payment on an otherwise clean record shouldn’t prevent hardworking people from finding their place on the property ladder.

That’s why Gen H is:

• Increasing its allowable default limit in the past 3 years from £100 to £300,
• Reducing its maximum missed payment policy to the last 2 years instead of the last 3 years, and
• Reducing its missed payment review period for new-build properties at 90% LTV and all other properties at 95% LTV from 3 years to 6 months. Standard lending requirements will apply after this point.

Gen H says rare missed payments are not fair indicators of financial irresponsibility, and these changes should enable more people to get the mortgage they need sooner.

These changes follow on from the lender’s implementation of Experian Boost within its credit decisioning model. Since launch, a fifth of people who’ve signed up to Experian Boost are now able to get a mortgage or extend their high-LTV borrowing options with Gen H, the lender states.

Pete Dockar, chief commercial officer at Gen H, said: “We’re in a housing crisis, and helping people onto the ladder or into a more sustainable position as homeowners requires a holistic approach. We’re doing our part by lowering the barriers to entry, from allowing the addition of income boosters to mortgages to taking a more understanding view of applicants’ credit history. It’s the right thing to do, and we hope to see other lenders follow suit.”

Will Marchant, credit policy manager at Gen H, added: “These changes are significant but were a natural decision for us. Now, our credit policy aligns more closely with our ethos as a business – to boost affordability through innovation, and help more people realise their dreams of homeownership. I’m looking forward to overseeing more positive changes in the months to come.”