THE PROPERTY FILTER TAKE
Nottingham BS cut its BTL stress rate by 0.30% to a new low of 5.70%, alongside mortgage rate reductions of up to 0.25% on selected BTL products (Nottingham Building Society, June 2026)
A lower BTL stress rate means the ICR calculation becomes more generous - the same projected rental income can now support a larger loan, which matters if you're financing an SA property via a BTL mortgage
You may wish to speak to your broker about whether your SA property now qualifies for better BTL terms under the revised stress rate
Nottingham Building Society has cut its buy-to-let (BTL) stress rate by 0.30%, bringing the lowest to 5.70% (Nottingham Building Society, June 2026). Selected BTL mortgage products were also cut by up to 0.25%. If you finance your SA (serviced accommodation) properties via BTL mortgages, this directly affects what a lender will let you borrow.
What Nottingham BS Changed
The changes took effect on 29 June 2026 as part of a wider affordability push. Residential mortgage rates fell by up to 0.32%, with the core range now starting from 5.04% (The Intermediary, June 2026). Residential stress rates were also cut by 0.15%, now sitting at a new low of 6.20%.
Matt Kingston, Nottingham Building Society's sales director, said rate reductions matter "particularly in a market where affordability remains one of the biggest barriers facing borrowers" (The Intermediary, June 2026). For SA operators exploring BTL finance options, you may wish to review how mortgage and bridging options fit your strategy alongside these changes.
32% of brokers said easing affordability requirements would have the greatest positive impact on the mortgage market, according to research commissioned by Nottingham Building Society.
Why SA Operators Should Pay Attention
Stress rates determine the ICR (interest coverage ratio) calculation. This is the test that checks whether your rental income covers the mortgage at a higher, stressed rate. A lower stress rate means the same projected income passes at a larger loan value.
For SA operators, nightly-rate income is harder to evidence than an assured shorthold tenancy (AST) rent. Any improvement in lender flexibility on stress testing is more significant here than in standard BTL. You can check your borrowing capacity with a stress test calculator to see how it shifts before you speak to a broker.
BTL versus other finance routes for SA? You may wish to explore SA and BTL investment strategies to put the decision in context.
Key takeaways
Nottingham BS cut its BTL stress rate by 0.30% to a new low of 5.70% (Nottingham Building Society, June 2026)
Selected BTL mortgage rates were reduced by up to 0.25%
Residential mortgage rates fell by up to 0.32%, with the core range from 5.04% (The Intermediary, June 2026)
A lower stress rate widens borrowing capacity - the same SA rental income may now service a larger BTL loan
32% of brokers cited affordability relief as the market's biggest need (Nottingham Building Society commissioned research)
Nottingham Building Society has cut its buy-to-let (BTL) stress rate by 0.30%, bringing the lowest to 5.70% (Nottingham Building Society, June 2026). Selected BTL mortgage products were also cut by up to 0.25%. If you finance your SA (serviced accommodation) properties via BTL mortgages, this directly affects what a lender will let you borrow.
What Nottingham BS Changed
The changes took effect on 29 June 2026 as part of a wider affordability push. Residential mortgage rates fell by up to 0.32%, with the core range now starting from 5.04% (The Intermediary, June 2026). Residential stress rates were also cut by 0.15%, now sitting at a new low of 6.20%.
Matt Kingston, Nottingham Building Society's sales director, said rate reductions matter "particularly in a market where affordability remains one of the biggest barriers facing borrowers" (The Intermediary, June 2026). For SA operators exploring BTL finance options, you may wish to review how mortgage and bridging options fit your strategy alongside these changes.
32% of brokers said easing affordability requirements would have the greatest positive impact on the mortgage market, according to research commissioned by Nottingham Building Society.
Why SA Operators Should Pay Attention
Stress rates determine the ICR (interest coverage ratio) calculation. This is the test that checks whether your rental income covers the mortgage at a higher, stressed rate. A lower stress rate means the same projected income passes at a larger loan value.
For SA operators, nightly-rate income is harder to evidence than an assured shorthold tenancy (AST) rent. Any improvement in lender flexibility on stress testing is more significant here than in standard BTL. You can check your borrowing capacity with a stress test calculator to see how it shifts before you speak to a broker.
BTL versus other finance routes for SA? You may wish to explore SA and BTL investment strategies to put the decision in context.
Key takeaways
Nottingham BS cut its BTL stress rate by 0.30% to a new low of 5.70% (Nottingham Building Society, June 2026)
Selected BTL mortgage rates were reduced by up to 0.25%
Residential mortgage rates fell by up to 0.32%, with the core range from 5.04% (The Intermediary, June 2026)
A lower stress rate widens borrowing capacity - the same SA rental income may now service a larger BTL loan
32% of brokers cited affordability relief as the market's biggest need (Nottingham Building Society commissioned research)
