Nottingham Building Society will remove minimum time remaining requirements for applicants on fixed-term contracts, and it will consider temporary contracts, short-term renewable contracts and rolling contracts.
The mutual will also look at future income when assessing affordability. This includes pending pay rises, confirmed future employment and allowing borrowers to secure a mortgage before starting a new role.
The firm will also offer more flexibility around secondary employment, accept certain variable income types and have a more “pragmatic approach” to customer profiles that “do not fit traditional affordability models”.
On capital-raising options, Nottingham Building Society will accept up to 80% loan to value (LTV). It will also accept gifts to family members, lease extensions, medical expenses, purchased commercial property, and buy-to-let (BTL) purchases where a property has not yet been identified.
Matt Kingston, sales director at Nottingham Building Society, said: “Too many lending models are still built around a version of work and income that simply doesn’t reflect how people live today. Careers evolve, contracts change, pay rises are agreed in advance and borrowers shouldn’t be forced to put major life decisions on hold because systems haven’t caught up.
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“These changes are about backing real people with real incomes. By widening our criteria and taking a more practical view of affordability, we’re helping brokers support customers who are doing the right thing but don’t fit a narrow definition of ‘standard’.
“This is just our latest step in ensuring our lending remains relevant, flexible and supportive – whether that’s for homeowners navigating complex incomes or landlords facing increasing pressure on returns.”
