Nottingham Building Society expands new build lending with wider builder incentive acceptance

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 Society 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. 

The change forms part of Nottingham Building Society’s ongoing programme of criteria-led lending improvements throughout 2026, designed to widen access to homeownership while maintaining responsible lending standards. 

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.  

Together, these changes reflect the Society’s focus on evolving its lending criteria in practical ways to better reflect how people live, work and buy homes today. 

Matt Kingston, Sales Director at Nottingham Building Society, 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.” 

Craig Hall, Director of Strategic Partnerships at LSL Financial Services, welcomed the move: “The new build market continues to play a crucial role in increasing housing supply across the UK, and developer incentives are often a key part of making purchases viable for buyers. 

“Expanding the acceptance of builder incentives across Nottingham Building Society’s lending range gives brokers greater confidence when placing new build cases and helps ensure buyers can make the most of the support developers are offering.” 

Nottingham Building Society will continue evolving its specialist and residential lending ranges throughout 2026, aligned with its commitment to supporting brokers and borrowers whose circumstances do not fit outdated models.