Nottingham Building Society expands residential lending to support agency workers, benefit income, and drawdown pensions

Nottingham Building Society has announced a further series of updates to its residential mortgage criteria - widening how it recognises earnings and other provable sources of income, including agency and zero-hours work, certain state benefits, and drawdown pensions. 

The latest changes form part of the Society’s ongoing programme of practical lending enhancements in 2026, designed to improve affordability assessments and support borrowers whose income does not always fit a traditional model. 

As part of the update, Nottingham Building Society will now accept a broader range of income sources when assessing residential mortgage affordability, including: 

• Agency and zero-hours contract income, where applicants have been in the same role for at least 12 months (for example, bank nursing and supply teaching).
• State benefit income alongside employed, self-employed or retirement income, including Universal Credit, Personal Independence Payment (PIP) and Disability Living Allowance.
• Drawdown pension income, including Self-Invested Personal Pensions (SIPPs) and other defined contribution pensions, for applicants already in receipt of this income. 

The changes are designed to support applicants whose finances are sustainable and well evidenced, but whose income profile may not sit neatly within a fixed-salary framework. The changes will apply across standard residential, foreign national and returning expats, and retirement interest-only (RIO) product ranges. 

This latest update builds on the series of residential enhancements the mutual have introduced since the start of the year, including: 

• Recognising confirmed future income such as pay rises and new roles.
• Simplifying routes for self-employed applicants.
• Increasing maximum loan-to-value on new-build flats to 85%.
• Removing the loan-to-value cap on lending into retirement.
• Cutting rates across the standard residential range, with new lending now starting from 4.38%. 

Matt Kingston, Sales Director at Nottingham Building Society, said: “Too many borrowers still find themselves treated as edge cases, even when they have a clear track record of earning and managing their money responsibly. 

“These changes are about recognising that real life doesn’t always present as a single fixed salary. If someone is doing the work, building income, and demonstrating resilience, our role is to assess that properly. That’s what good underwriting is for. 

“We remain focused on widening access in practical ways, supporting brokers with the clarity and flexibility they need, while maintaining responsible lending standards.” 

Continued investment in specialist lending 

Alongside its residential proposition, Nottingham Building Society continues to strengthen its specialist lending capabilities. 

This includes enhancements to its Foreign Nationals proposition, expanding access to international credit data across 15 countries, via its partnership with Nova Credit, and widening eligibility to include Family Visa applicants. 

The Society expects to continue developing both its residential and specialist lending propositions throughout 2026, as part of its commitment to delivering lending solutions that reflect modern financial lives.