Nottingham Building Society has announced a further enhancement to its lending criteria, widening the range of builder incentives it will accept on new build mortgage applications.
Under the updated criteria, the mutual will now accept developer incentives of up to 5% of the property’s value across its residential lending range – via its market-leading IDI Broker Portal – supporting borrowers purchasing newly built homes. Offers made will also be valid for up to nine months.
The move builds on enhancements first introduced when Nottingham Building Society confirmed that foreign national and returning expat applicants could use new build developer incentives of up to 5% towards their deposit.
By extending this approach more broadly, the society aims to support brokers and borrowers navigating the realities of the new build market, where developer incentives often play an important role in helping buyers bridge deposit gaps or manage affordability pressures.
Recent updates across the Society’s lending ranges have included:
Accepting agency and zero-hours contract income, certain state benefits, and drawdown pension income to support affordability.
Increasing the maximum LTV for new build flats to 85%.
Removing the loan-to-value cap on lending into retirement.
Introducing lending on ex-local authority flats, supporting a sector estimated to include around one million properties across the UK.
Updated assessments on concessionary purchases from landlords, allowing private landlords to sell to existing tenants at a discounted price, supporting smoother transitions and reducing friction for both parties.
Commenting Nottingham BS sales director Matt Kingston said: “Developer incentives have become a normal and often necessary part of the new build market. For many buyers, particularly first-time buyers, they can make the difference between being able to move forward with a purchase or remaining locked out of the market.
“Our role is to recognise those realities and respond in a way that supports brokers and borrowers while maintaining clear and responsible lending standards. By widening the incentives we can accept, we’re giving brokers greater flexibility and helping more customers navigate the practical challenges of buying a new home.”
