The lender said for second charge affordability, it would be able to consider up to 100% of bonus, overtime and commission income where there is “evidence the income is consistent and sustainable”.

The firm added that there are around 70,000 children living in 53,000 foster families across the UK this had led to their decision around accepting foster care income.

Ryan McGrath (pictured), second charge sales director at Pepper Money, said: “Our living and working habits have changed over recent years and as a leading specialist and second charge mortgage lender, Pepper has a reputation for helping more customers to achieve their goals by taking a pragmatic, hands-on approach to assessing their circumstances.

“There are a vast number of occupations where variable incomes like bonuses, overtime, and commission are intrinsic to the role. In addition, over recent years the value and challenges foster carers face have been exasperated. We would like to support all such customers to overcome potential affordability hurdles.”

He continued: “Therefore, it is important that we can consider variable income as part of our affordability calculation. This is particularly helpful for those customers who want to raise funds to consolidate unsecured debts and control their monthly outgoings in the current climate.

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“We’re proud to provide more customers access to financial solutions that suit their lifestyle and needs. These affordability enhancements in addition to our recent improvements for self-employed customers demonstrates our commitment to helping more customers fulfil their mortgage ambitions.”

Pepper Money recently made changes to its second charge application journey so it is now paperless, has widened self-employed criteria, adding payout before consent and bringing out e-signatures.