The lender has lifted restrictions on county court judgements and defaults meaning there is no cap on either volume or value for these.
It is also able to consider unsecured missed payments within the last twelve.
Rates have been cut on its buy-to-let limited company range with its lowest starting from 3.25 per cent.
And the lender has re-introduced its flat fee structure.
Pepper Money sales director Paul Adams (pictured) said the lender would be introducing more changes over the coming weeks and months.
“This latest enhancement means that we can take a more flexible approach to lending for customers who have recent incidents of adverse credit,” he said.
“We are proud to be able to offer a solution to a growing number of customers who do not fit the restrictive mould of the high street credit scoring model.”
Pepper has also been added to the Primis lending panel, allowing the network’s appointed representatives (ARs) access to its residential and buy-to-let mortgage ranges.
Primis mortgage network proposition director Vikki Jefferies said increasing the specialist proposition would be a key focus over the coming months.
“The property market is buoyant at the moment and more customers are finding that their needs are best met by a specialist lender that is able to take a pragmatic approach to recent changes in their circumstances,” she said.
“Welcoming Pepper Money onto the panel will be greatly welcomed by our members and we are confident that it will ensure more of our AR firms can continue supporting their specialist customers with the tailored lending solutions they require.”