Move aims to help people get on to the property ladder amid the housing crisis
Fintech mortgage lender Gen H has announced significant adjustments to its credit criteria to enhance mortgage accessibility for prospective homeowners in the UK.
The lender has raised the allowable default limit over the past three years from £100 to £300. It has also reduced the maximum timeframe considered for missed payments to the last two years, down from three years.
In addition, Gen H has shortened the review period for missed payments on properties with a loan-to-value (LTV) ratio of 90% for new-builds and 95% for other properties from three years to just six months. After this period, standard lending requirements will be applicable.
According to Gen H, an accidental missed payment on an otherwise clean record should not prevent people from getting on to the property ladder. It added that rare missed payments are not fair indicators of financial irresponsibility, and the latest changes it has made to its criteria should enable more people to get the mortgage they need.
“We’re in a housing crisis, and helping people on to the ladder or into a more sustainable position as homeowners requires a holistic approach,” Pete Dockar (pictured), chief commercial officer at Gen H, said. “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 that the changes were significant but were a natural decision for Gen H.
“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,” Marchant said. “I’m looking forward to overseeing more positive changes in the months to come.”
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