The mutual said the change would offer greater flexibility to borrowers and add an additional means of them repaying the capital of a mortgage once all the interest has been serviced.
Usually, pension plan lump sums, stocks and shares ISA and the sale of investment properties or second homes are accepted forms of repayment.
Allowing borrowers to use the SOMP will enable them to sell their current property and potentially move into a smaller home.
The Nottingham’s interest-only range is available up to 80 per cent loan to value (LTV) and allows a part repayment, part interest-only payment structure as well as solely interest-only.
Borrowers who choose SOMP as their primary repayment mention will be available to borrow up to 60 per cent LTV and must have at least £200,000 equity in their home, or £300,000 in London and the South East.
Borrowers can still select more than one repayment method which can allow them to go up to 80 per cent on interest-only using the other approved repayment methods or use SOMP up to 60 per cent LTV in conjunction with another repayment method.
The mutual has made a number of changes to its criteria in recent months, such as no longer requiring bank statements on mortgages up to 80 per cent LTV and making changes to its contractor policy.
Alison Pallett (pictured), sales director at Nottingham Building Society, said: “The Nottingham remains committed to strengthening its relationships with brokers and empowering borrowers through innovative solutions and continues to evolve its services to meet the dynamic needs of customers effectively.
“We are always ready to adapt our offering to the changing demands of the market and economic climate, and this latest update will provide customers with a wider range of solutions that work for them.”
Principality BS
Principality Building Society has made changes to its mortgage offering for new borrowers.
On its two, three and five-year fixed rates at 75 per cent LTV, pricing has been lowered by up to 0.22 per cent, while at 80 per cent LTV, two and five-year fixes have been reduced by up to 0.54 per cent.
Select two and five-year fixed rates at 85 per cent have been cut by up to 0.49 per cent, while select two and five-year fixes at 90 per cent LTV have gone down by up to 0.51 per cent.
At 95 per cent LTV, five-year fixed rates have been cut by up to 0.07 per cent.
The rates of the lender’s two and five-year fixed joint borrower sole proprietor mortgages at 95 per cent LTV will rise by as much as 0.51 per cent.
It will also withdraw two and five-year mortgages that have both a product fee and cashback.
Across its buy-to-let offering, Principality Building Society is reintroducing five-year fixes at 60, 70 and 75 per cent LTV. Some of these products now have a minimum loan size of £25,000.
The mutual will also be withdrawing its two-year fixed buy-to-let products, as well as discounted rate offerings.
The buy-to-let stress rate will also be lowered to 5.87 per cent.
