The lender will allow defaults on small utilities, communications and mail order shopping to be ignored on four of its loans.
This is the first time the lender has permitted these events to be disregarded.
Across its mortgage range, it will permit borrowers who have missed payments on fixed term credit agreements to apply six months after the event – it was previously after 12 months.
Pepper has also introduced interest-only repayments method on residential remortgages to 60% loan-to-value (LTV).
It has previously made interest-only available for purchases.
Self-employed additional considerations
The lender will also now permit self-employed borrowers to include additional income considerations as part of its affordability assessment.
These include expenses add-backs, directors’ car allowance, directors’ pension contributions, use of home as office and private health insurance.
And it has cut its minimum age requirement to 21 from 25.
Pepper Money sales director Rob Barnard said: “We are always reviewing our products and pricing to ensure that we can make it as easy as possible for brokers to find a home for their interesting cases.
“Last week we slashed rates on a limited edition range of keenly priced products and today we have enhanced our criteria across a number of key areas. I think this goes some way to show the scale of Pepper’s commitment to brokers and our ambition to help even more borrowers.”