London-based fintech lender Gen H has revised its credit criteria, incorporating Experian Boost into its credit decisioning, to facilitate easier access to mortgages for more individuals.
This initiative comes as a response to the compounded challenges of escalating house prices, wage stagnation, and the financial burden of stamp duty, which have been barriers to homeownership.
Gen H’s adjustments include an increase in the allowable default limit from £100 to £300 over the past three years, a reduction in the maximum missed payment policy to the last two years from three, and a shortened missed payment review period for certain high loan-to-value (LTV) properties—from three years to just six months, after which standard lending criteria will resume.
The lender emphasises that occasional missed payments should not severely impact one’s ability to secure a mortgage.
With the introduction of Experian Boost, Gen H now recognizes an applicant’s enhanced credit score as their official score, setting a precedent in the lending industry.
This approach has already enabled a significant number of Experian Boost users to qualify for a mortgage or expand 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, reflected on the policy update: “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 realize their dreams of homeownership. I’m looking forward to overseeing more positive changes in the months to come.”
