Quarter of cities still below pre-crisis house prices

Mr Seal said: "There is, however, another group of borrowers we need to consider; those with irregular incomes or a weak credit history, as these customers are often unable to obtain mainstream financial support.

"Real life is full of unforeseen bumps and a one-off event should not have a permanent bearing on someone’s ability to borrow - instead, lenders need to take the time to recognise the underlying circumstances and offer solutions accordingly."

Mr Seal said ultimately, this strategy would not only benefit clients from all backgrounds, but will also help to encourage activity in the wider market.

rachel.addison@ft.com