Nottingham Building Society has announced a series of rate reductions across its residential mortgage ranges, alongside changes to stress rates designed to support affordability and increase lending capacity.
The Society has lowered rates across all residential products by between 0.20% and 0.32%. The changes apply across its core residential and foreign national ranges as well as its retirement interest-only mortgages and existing customer range. Following the reductions, core residential rates will now start from 5.04%.
The lender is also reducing stress rates in response to the softening of expectations for future interest rates.
The residential changes follow reductions to Nottingham's buy-to-let rates recently, where selected products were reduced by up to 0.25%.
The Society also recently widened access to higher income multiples, is accepting additional visa types across its foreign national range, and recognises additional income sources including agency and zero-hours income, drawdown pension, and a range of state benefits.
Recent research commissioned by Nottingham Building Society found that 32% of brokers believe easing affordability requirements would have the greatest positive impact on the mortgage market.
Matt Kingston, sales director at Nottingham Building Society, said: “Rate reductions matter, particularly in a market where affordability remains one of the biggest barriers facing borrowers. But this is not just about headline pricing. It is about making sure our lending proposition continues to work in the real world.
“By reducing rates across our residential ranges and adjusting stress rates where it is responsible to do so, we can give brokers more scope to place viable cases and help more customers access the borrowing they need.
“These changes sit alongside the wider criteria and affordability enhancements we have made throughout this year. Whether that is recognising more types of income, broadening support for foreign nationals, or developing new propositions, our focus is on removing unnecessary barriers while continuing to lend responsibly.
“Good borrowers do not all look the same. Our role is to keep evolving our approach, so brokers have practical, flexible options for customers whose lives and finances do not fit outdated models.”
