Nottingham Building Society has announced a series of updates to its residential mortgage criteria - widening how it recognises earnings and other provable sources of income, including agency and zero-hours work, certain state benefits, and drawdown pensions.
As part of the update, the Society will now accept a broader range of income sources when assessing residential mortgage affordability, including:
• Agency and zero-hours contract income, where applicants have been in the same role for at least 12 months (for example, bank nursing and supply teaching).
• State benefit income alongside employed, self-employed or retirement income, including Universal Credit, Personal Independence Payment (PIP) and Disability Living Allowance.
• Drawdown pension income, including Self-Invested Personal Pensions (SIPPs) and other defined contribution pensions, for applicants already in receipt of this income.
The changes will apply across standard residential, foreign national and returning expats, and retirement interest-only (RIO) product ranges.
This latest update builds on the series of residential enhancements the mutual have introduced since the start of the year, including recognising confirmed future income such as pay rises and new roles, simplifying routes for self-employed applicants, increasing the maximum LTV on new-build flats to 85%, removing the LTV cap on lending into retirement, and cutting rates across its standard residential range.
Matt Kingston, sales director at Nottingham Building Society, said: “Too many borrowers still find themselves treated as edge cases, even when they have a clear track record of earning and managing their money responsibly.
“These changes are about recognising that real life doesn’t always present as a single fixed salary. If someone is doing the work, building income, and demonstrating resilience, our role is to assess that properly. That’s what good underwriting is for.
“We remain focused on widening access in practical ways, supporting brokers with the clarity and flexibility they need, while maintaining responsible lending standards.”
