Pepper Money has loosened a range of criteria tests aimed at customers “who just miss out on a high street lender”.

The specialist lender will now accept up to 5% builder’s deposit on residential new build applications.

It has also expanded its automated valuation model tolerance to save remortgage customers time and money on their valuations.

The firm has increased the maximum age at the end of mortgage term to 80 years old, from 75, with earned income accepted up to 75, from 70.

Pepper Money has previously extended its maximum term to 40 years, and adds “these combined criteria changes will help more customers to overcome the affordability challenge and spread the cost of their mortgage over a longer period”.

Pepper Money sales director Paul Adams, says: “At Pepper Money, we know that the economic environment over recent years has put unprecedented strain on the finances of the nation’s households and we’ll soon be launching our latest specialist lending study, which shines a light on the scale of the challenge.

“So, we are doing all we can to help those customers who just miss out on a mortgage from a high street lender to continue to be able to achieve their goals.”