Nottingham Building Society has updated its buy-to-let (BTL) lending criteria.
This includes an extension of the maximum term of the BTL mortgage to 40 years, compared to the previous limit of 35 years.
The Nottingham says the shift is designed to give landlords more flexibility in structuring loans, while also supporting a growing number of casual landlords, where longer terms can help manage affordability and repayment profiles.
Additionally, the association has updated its BTL criteria to support affordability and access.
The innovation includes opening up loans to first-time landlords, allowing customers entering the rental market for the first time to build sustainable investments, as well as introducing more flexible lease term requirements where properties continue to meet society’s minimum end-of-term standards.
It has also revamped its approach to portfolio coverage, which it says is part of a broader effort to support more consistent and transparent assessments of background portfolios, while maintaining BTL’s core affordability framework and responsible lending standards.
Nottingham Building Society sales director Matt Kingston says: “The buy-to-let market continues to evolve and landlords are operating in a very different environment than even a few years ago.”
“Lending structures, portfolio management and the types of customers entering the market are all changing.”
“These updates are about recognizing that reality and giving brokers more flexibility when posting business.”
“Extending the maximum mortgage term, opening our criteria to first-time landlords and adopting a more transparent portfolio stress rate all help create a more practical framework for landlords managing their investments today.”