Nottingham BS reduces residential and buy-to-let stress rates 

Nottingham Building Society has improved affordability for homebuyers by making a series of reductions across its stress rates for residential and buy-to-let applications.

Stress rates for residential applications have been cut by 0.15%, with the lowest now at 6.20%, increasing the affordability of home loans for aspiring homeowners. Meanwhile, buy-to-let stress rates have been reduced by 0.30%, with the lowest now at 5.70%. 

The series of changes follow the launch of two new residential cashback products to combat the impending stamp duty changes — allowing future homebuyers to claim up to £5,000 in cashback — as the Society continues to explore solutions to improve affordability testing.

Matt Kingston, sales director at Nottingham Building Society, said: “These changes are our latest step in making sure as many people as possible have access to fairer and more flexible mortgage solutions. We know that homeownership remains a key ambition for millions of people, but affordability remains one of the biggest hurdles. 

“By reducing our stress rates, we’re helping more borrowers — including those with complex income streams — access the homes they want, rather than being held back by restrictive affordability tests.

"These changes reflect both shifts in the interest rate environment and our own commitment to supporting a broader range of customers, including foreign nationals on a visa, self-employed workers, and those who may not fit the rigid, automated approach of some other lenders. means making sure as many people as possible have access to fair, flexible mortgage solutions.”