The firm will accept a wider range of income sources when assessing residential mortgage affordability.
This includes agency and zero-hours contract income, where applicants have been in the same role for at least 12 months. This would cover bank nursing and supply teaching.
Nottingham Building Society said it will also consider state benefit income alongside employed, self-employed or retirement income, including Universal Credit, Personal Independence Payment (PIP) and Disability Living Allowance.
The mutual will also look at drawdown pension income, including self-invested personal pensions (SIPPs) and other defined contribution pensions, for applicants already in receipt of this income.
The firm said it aims to “support applicants whose finances are sustainable and well-evidenced, but whose income profile may not sit neatly within a fixed-salary framework”.
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This will cover standard residential, foreign national and returning expats and retirement interest-only (RIO) products.
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.”
Nottingham Building Society has made a raft of criteria changes this year, including for self-employed, new build and lending into retirement.
