The criteria changes apply to new build, automatic valuation models (AVM) and maximum age.

The lender can now accept up to 5% builders deposits on residential new build applications to help more homeowners.

The firm has also changed its AVM criteria to help more remortgage customers save time and money on their valuation.

Pepper Money has upped the maximum age at the end of term to 80 years old and earned income accepted has been boosted to age 75.

The lender previously expanded its maximum term criteria to 40 years, and said the criteria changes would “help more customers to overcome the affordability challenge and spread the cost of their mortgage over a longer period”.

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Paul Adams, sales director at Pepper Money, said: “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.”

He continued: “Last week, we introduced significant rate cuts right across our range, and this week, we can announce these new criteria enhancements, which will make our mortgages even more accessible to a wider range of customers.

“We are clear that just because a customer misses out on a high street mortgage, they shouldn’t miss out on competitive pricing, products with added value and exceptional service.”