The update will apply to applicants who have experienced a reduction of more than 10% in business income as a result of the pandemic, but who have since seen their earnings return to pre-pandemic levels.

For self-employed borrowers in this position, Bluestone will use applicants’ 2019/2020 income where they can demonstrate earnings in the most recent three months have returned to that level.

Bluestone will also consider how the applicant’s business was affected by the pandemic, the sustainability of the applicant’s income and whether any financial support from the government has been received.

Reece Beddall, head of sales & marketing at Bluestone Mortgages, said: “As a specialist lender, we are acutely aware of the hardships that the self-employed community has faced during the COVID-19 pandemic, and we remain committed to providing these borrowers with a lending solution that will better meet their needs.

“Today’s update highlights this very fact, reaffirming Bluestone’s long-held ethos to support borrowers who have recovered financially from a life event and are now perfectly eligible for a loan.

“With our updated credit policy, we will be more able to cater to the growing needs of self-employed borrowers and ensure that more of this demographic can access the financing they need as the pandemic continues and consumer demand rises.

“The support of our funders and intermediary partners has been crucial to achieving this goal, and we are confident that today’s announcement will be met with great sentiment by advisers with self-employed clients.”