"We’re listening closely to what brokers are telling us and evolving our lending approach to match. We’re proud to be a mutual that’s stepping up where it matters most"
- Matt Kingston - Nottingham Building Society
Nottingham Building Society has introduced a range of improvements across its residential mortgage products to address affordability challenges and better serve borrowers and brokers.
The changes include rate cuts of up to 17bps on selected residential products, covering Foreign National and Retirement Interest-Only (RIO) mortgages. Additionally, new £1,000 cashback options are now available on 90% and 95% loan-to-value (LTV) products to support buyers with limited deposits.
The Society has also extended loan-to-income (LTI) ratios to 5.5 times for purchase and remortgage applicants earning over £85,000. Stress rate reductions have been applied to all two-year fixed residential deals.
These updates aim to provide greater flexibility for a wider range of borrowers, including first-time buyers, older customers, and those with complex financial backgrounds.
The society’s recent mid-year broker survey revealed a strong demand for more innovation and faster responses from lenders. While 83% of brokers expressed optimism about the mortgage market compared to six months ago, they also reported concerns:
74% feel mainstream lenders are not moving quickly enough to meet changing borrower needs
61% say product innovation should be a priority to support diverse financial situations
27% have seen an increase in buyers struggling after fixed terms end
22% note that clients with non-traditional careers are finding it harder to prove affordability
The Society said these enhancements reflect broker feedback and its commitment to providing lending solutions aligned with borrowers’ real-life circumstances.
“Affordability remains one of the most pressing issues facing the mortgage market, and it’s our job to respond with solutions that help more people secure and keep their homes," explained Matt Kingston, sales director at Nottingham Building Society. “These latest changes are part of our continued drive to support brokers and borrowers with flexible products that reflect real life, whether that’s cashback to ease upfront costs or extended LTIs for those on modest incomes.
He added, “We’re listening closely to what brokers are telling us and evolving our lending approach to match. We’re proud to be a mutual that’s stepping up where it matters most.”
