Nottingham Building Society has announced an enhancement to its lending criteria, widening the range of builder incentives it will accept on new build mortgage applications.
Under the updated criteria, the Society will now accept developer incentives of up to 5% of the property’s value across its residential lending range via its IDI Broker Portal. Offers made will also be valid for up to nine months.
The Society previously confirmed that foreign national and returning expat applicants could use new build developer incentives of up to 5% towards their deposit, and is now extending the approach more broadly.
Recent updates across the Society’s lending ranges have included accepting agency and zero-hours contract income, certain state benefits, and drawdown pension income to support affordability.
In addition, the Society recently increased the maximum LTV for new build flats to 85% and removed the loan-to-value cap on lending into retirement.
Matt Kingston, sales director at Nottingham Building Society, said: “Developer incentives have become a normal and often necessary part of the new build market. For many buyers, particularly first-time buyers, they can make the difference between being able to move forward with a purchase or remaining locked out of the market.
“Our role is to recognise those realities and respond in a way that supports brokers and borrowers while maintaining clear and responsible lending standards. By widening the incentives we can accept, we’re giving brokers greater flexibility and helping more customers navigate the practical challenges of buying a new home.”
