Nottingham Building Society, the mortgages and savings mutual, 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 where cases remain responsible and sustainable.
On Monday 29 June, the Society will reduce 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 across its Retirement Interest-Only mortgages and existing customer range. Following the reductions, Core Residential rates will now start from 5.04%.
The specialist residential lender is also reducing stress rates in response to the softening of expectations for future interest rates, enabling it to safely lend more in some cases while maintaining its responsible lending standards.
Those residential changes follow reductions Nottingham Building Society made to its buy-to-let rates recently, where selected products were reduced by up to 0.25%.
As part of its broader strategic programme of product, affordability, and criteria updates introduced at the start of 2026, the Society also 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.
The latest changes come at a time when affordability continues to dominate broker and borrower concerns across the market.
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, highlighting the growing importance of affordability as a core market lever.
The same research also shows that affordability pressures are becoming more embedded across the mortgage lifecycle, with 28% of brokers reporting an increase in borrowers struggling with affordability checks at fixed-rate expiry, alongside sustained pressures for customers with more complex or non-standard income profiles.
“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.”
Matt Kingston, Sales Director at Nottingham Building Society
