Residential mortgage lender, Gen H, has made changes to its internal credit scoring system which will allow it to lend to more aspiring homeowners.
Gen H expects that approximately 1 in 6 decisions-in-principle which would have failed on credit score criteria should now pass.
Gen H says that amidst the cost of living crisis, "more and more people are finding themselves with little blips in the road". It added that "very often, these blips are not indicative of financial irresponsibility, and are instead isolated incidents, such as a missed payment or one-off utility bill default picked up by mistake when moving from one rental to another".
Pete Dockar, Gen H’s chief commercial officer, said: “Credit scores are a simple, helpful tool for those with clear credit to demonstrate their track record of responsible money management.
"But when there’s a thin file, or if there have been a few isolated issues in the past, it’s better to have a human take a look at the case and form their own judgment on the best path forward. These positive changes empower our lending team to help even more people find a sustainable route into homeownership.”
