Gen H has announced updates to how it treats missed utilities and communications payments on applicants’ credit files.

Effective immediately, the lender will exclude utilities and communications accounts from its arrears rules. The lender has also increased the threshold for communications and utilities account defaults in the last three years from £300 to £500 combined so long as a strong rationale can be provided.

Gen H said its move acknowledges that for many, life has one or two bumps in the road – a forgotten phone bill, or an unexpectedly high energy bill – but this shouldn’t prevent someone from buying a home.

These updates reflect the lender’s commitment to deliver criteria that supports today’s buyers, and will provide greater clarity for mortgage brokers on the lender’s decision-making as they place cases.

Pete Dockar (pictured), chief commercial officer at Gen H, said: “Until recent years, this type of lenience wouldn’t have been treated as common sense amongst the high street. Lenders worry about defaults because these can imply that a loan, if granted, could be at risk.

“But this perspective locks out too many aspiring homeowners who deserve to realise their dreams. We want to support everyone – not just those borrowers who fit that very, very narrow definition of creditworthy. We’re still living through a difficult economic period, and sometimes, borrowers need unique support to help them reach their goals.”