Gen H improves adverse credit criteria

Gen H has announced a series of changes to its credit criteria to improve mortgage accessibility for aspiring homeowners.

The lender is increasing its allowable default limit in the past three years from £100 to £300 and reducing its maximum missed payment policy to the last two years instead of the last three years.

In addition, Gen H is reducing its missed payment review period for new build properties at 90% LTV and all other properties at 95% LTV from three years to just six months. Standard lending requirements will apply after this point.

These changes follow on from the implementation of Experian Boost within Gen H's credit decisioning model.

Since launch, the lender says 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.

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.”