On the ex-local authority side, the mutual will lend on any flats that were previously owned or managed as social housing but are now part of the private market up to 85% loan to value (LTV).
Nottingham Building Society said it estimated that there are around one million properties in this bracket and this would apply to the residential and buy-to-let (BTL) ranges, encompassing first-time buyers and landlords.
The mutual added that it would accept housebuilder gifted deposits for new-build properties, as long as the borrower matches the gift with their own funds. It said builder incentives can be included in the LTV calculation up to a maximum of 5% of the valuation or purchase price, depending on whichever is lower.
Nottingham Building Society will also allow concessionary purchases from landlords, so private landlords can sell to existing tenants at a discounted price.
The firm will also now allow the repayment of a director’s loan as a deposit source, which means self‑employed applicants can use funds owed to them by their company towards their deposit, where the repayment is fully evidenced.
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The changes come off the back of the company changing how it recognises earnings and other sources of income to reflect modern income patterns.
Matt Kingston (pictured), sales director at Nottingham Building Society, said: “These are changes rooted in what we’re hearing every day from brokers. Ex‑local authority flats form a huge part of the UK’s housing stock, yet support for them remains patchy.
“Landlords are increasingly selling directly to tenants. Self‑employed customers are relying more on legitimate capital flows. And new‑build purchases can be made possible only when housebuilders step in to help with deposits. None of these are niche scenarios. They are the reality of today’s property market.”
He continued: “Our role as a modern and specialist mutual is to respond to real‑world circumstances with clarity and common sense. By expanding our criteria in these four areas, we’re removing unnecessary barriers, strengthening viable routes into homeownership, and giving brokers more confidence when placing cases that fall outside a narrow definition of ‘standard’.
“We’re building meaningful momentum through 2026, and these enhancements are another step in ensuring our lending reflects the way people actually move, work and save today.”
