The lender will exclude utilities and communications accounts from its arrears rules.

It has also increased the threshold for communications and utilities account defaults in the last three years from £300 to £500 combined so long as a strong rationale can be provided.

Gen H chief commercial officer Pete Dockar says: “Until recent years, this type of lenience wouldn’t have been treated as common sense amongst the high street. Lenders worry about defaults because these can imply that a loan, if granted, could be at risk. But this perspective locks out too many aspiring homeowners who deserve to realise their dreams.”

“We want to support everyone – not just those borrowers who fit that very, very narrow definition of creditworthy. We’re still living through a difficult economic period, and sometimes, borrowers need unique support to help them reach their goals.”