LendInvest has announced changes to its residential lending criteria alongside rate reductions across parts of its mortgage range.
The specialist lender said it will no longer treat missed payments or defaults on communications and utility bills as adverse credit, marking a notable shift in how it assesses applicants’ credit profiles.
In addition, LendInvest has updated its approach to complex employment arrangements. It will now accept 100% of base pay for applicants on zero-hour contracts, provided there is a 12-month employment history.
INTEREST-ONLY
The lender has also introduced greater flexibility for interest-only borrowing. Borrowers will be able to use the sale of a mortgaged property as a repayment vehicle, subject to a minimum of £250,000 equity, supporting applicants planning to downsize in the longer term while keeping monthly payments lower.
Alongside the criteria changes, LendInvest is cutting rates across a number of residential mortgage products. Two-year fixed rates across its Premier and Advantage tiers have been reduced by up to 35bps, while five-year fixed rates in the same tiers are down by up to 15bps.
Rates across the Progress and Support tiers have also been reduced by up to 25bps.
The lender said the changes come at a time when affordability pressures, evolving income structures and higher house prices are making it harder for some borrowers to access mainstream mortgage products.
Research carried out by LendInvest in autumn 2025 found that 18% of adults had missed a payment on a utility account in the previous year, rising to 21% among those with complex incomes.
The same research showed that 35% of aspiring homeowners felt discouraged from applying for a mortgage by high street lenders because of their employment status or income streams.
NO ONE-SIZE FITS ALL
Paula Mercer, sales director at LendInvest, said: “At LendInvest, we know that there is no ‘one-size-fits-all’ approach to purchasing or remortgaging a home, and we take great pride in offering mortgage solutions to those with complex income streams and with less-than-perfect credit histories.
“That’s why we’ve decided to take a look at our criteria and made the decision not to consider missed payments on utilities “adverse” and open up our approvals to allow for more unique and complex income streams, like taking 100% of basic pay from zero hour contracts with a 12-month history.”
MORE OPPORTUNITY
She added: “Our research revealed that there are many barriers to even applying for a residential mortgage, and we believe that removing these barriers will give more people the opportunity to purchase their own home.
“We’re looking forward to working with mortgage intermediaries across England, Scotland and Wales to provide reliable, informed and clear information and products that can support their clients and their residential mortgage needs.”
