Following the cuts, pricing in the core residential range will now start from 5.04%.
These residential changes follow recent reductions made by the society to its buy-to-let (BTL) rates, 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 has 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 specialist residential lender is also reducing stress rates in response to the softening of expectations for future interest rates.
Research commissioned by Nottingham Building Society found that 32% of brokers believed 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 affordability checks at fixed rate expiry, alongside sustained pressures for customers with more complex or non-standard income profiles.
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Matt Kingston, sales director at Nottingham Building Society, said: “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.”
