Understanding the Birmingham Midshires limited company lending criteria is essential for UK landlords and property investors looking to expand their portfolios in 2025. Whether you’re a seasoned landlord or exploring limited company buy-to-let options for the first time, knowing what BM Solutions requires can help you plan your next move with confidence. As a trusted name in the buy-to-let mortgage space, Birmingham Midshires offers competitive products tailored to limited company structures, but navigating their criteria can be complex without expert insight.
Below, we answer some of the most common questions landlords and brokers ask about Birmingham Midshires’ approach to limited company lending.
What are the basic Birmingham Midshires limited company lending criteria?
BM Solutions, the intermediary-only arm of Birmingham Midshires, offers buy-to-let mortgages to limited companies, but there are specific eligibility requirements. The company must be a Special Purpose Vehicle (SPV) registered in England, Wales, or Scotland, and it should have one of the accepted SIC codes related to property letting and management (e.g. 68209). All directors and shareholders with 25% or more ownership will need to undergo full credit and affordability checks.
Additionally, BM Solutions typically requires a minimum property value of £60,000 and a minimum loan amount of £25,001. The maximum loan-to-value (LTV) is usually 75%, and rental income must meet their stress test criteria. For the latest updates and to ensure your company structure meets their standards, it’s advisable to speak with a mortgage broker familiar with Birmingham Midshires mortgage products.
Can I apply for a BM Solutions mortgage through a trading limited company?
No, BM Solutions only lends to Special Purpose Vehicles (SPVs), not trading limited companies. An SPV is a company set up solely for the purpose of holding and letting property. This distinction is important because SPVs are easier for lenders to assess in terms of risk and purpose. If your company is engaged in other business activities, such as construction or hospitality, you will not be eligible for a Birmingham Midshires limited company mortgage.
To qualify, your company must have an appropriate SIC code, such as 68209 (Other letting and operating of own or leased real estate). If your company is not currently structured as an SPV, you may need to set up a new one or restructure your existing business. A mortgage adviser can help you determine the best route forward and explore other options like a Birmingham Midshires remortgage if you’re already a customer.
What type of properties does BM Solutions accept for limited company lending?
BM Solutions has clear property criteria for limited company buy-to-let mortgages. They typically accept standard residential properties, including houses and flats, provided they are in good condition and suitable for letting. However, there are restrictions. For example, they do not lend on HMOs (Houses in Multiple Occupation), multi-unit freehold blocks, or properties above commercial premises.
The property must also meet minimum valuation thresholds and be located in England, Wales, or mainland Scotland. New-build flats are accepted but may be subject to lower maximum LTVs. It’s important to ensure the property type aligns with BM Solutions’ criteria before applying. A broker can help you assess whether your property is suitable and guide you through the BM Solutions product transfer or application process.
How does BM Solutions assess rental income for limited company applications?
BM Solutions uses a rental stress test to determine affordability for limited company buy-to-let mortgages. As of 2025, they require the rental income to cover at least 125% of the mortgage interest, calculated at a notional rate of 5.5% (or higher depending on the product and LTV). This is to ensure the property generates sufficient income to cover mortgage payments, even if interest rates rise.
For limited companies, BM Solutions does not consider personal income in affordability assessments. Instead, the focus is entirely on the rental income from the property. This can be advantageous for landlords with multiple properties or those who are self-employed. Be sure to consult with a broker who understands the nuances of the Birmingham Midshires mortgage process to ensure your rental figures meet the required thresholds.
Can I do a product transfer with BM Solutions on a limited company mortgage?
Yes, if you already have a limited company mortgage with BM Solutions, you may be eligible for a product transfer when your current deal ends. A product transfer allows you to switch to a new rate without changing lenders or undergoing a full application process. This can be a cost-effective way to avoid moving onto a higher Standard Variable Rate (SVR).
BM Solutions typically offers a range of fixed-rate and tracker products for existing customers. The process is relatively straightforward, especially when handled by a broker familiar with BM Solutions product transfer procedures. Keep in mind that product transfer eligibility and rates can vary, so it’s wise to review your options at least three months before your current deal expires.
Are there any director or shareholder requirements for limited company applications?
Yes, BM Solutions has specific requirements for company directors and shareholders. All individuals with 25% or more shareholding must be named on the mortgage application and will undergo full credit checks. Each director must also be a UK resident and meet BM Solutions’ personal credit and background criteria.
The lender prefers companies with up to four directors/shareholders, and all must be natural persons—corporate shareholders are not permitted. Additionally, BM Solutions does not allow guarantors for limited company applications. If your company has a more complex structure, it may not meet the Birmingham Midshires limited company lending criteria, and you may need to explore alternative lenders or restructure your business.
Working with a broker experienced in Birmingham Midshires remortgage and limited company applications can help ensure your company setup aligns with current lending standards.
How long does it take to get a Birmingham Midshires limited company mortgage approved?
The timeline for approval can vary, but most limited company applications with BM Solutions take between 3–6 weeks from submission to offer, assuming all documentation is in order. The process includes underwriting, property valuation, and legal work, so delays can occur if there are complications with company structure, property type, or missing paperwork.
To speed up the process, ensure your SPV is correctly registered, your SIC code is appropriate, and all directors are prepared with ID and financial documents. Working with a broker who specialises in Birmingham Midshires mortgage products can help you avoid common pitfalls and keep your application on track.
In 2025, with the buy-to-let landscape evolving, being well-prepared and informed is key to securing the right mortgage for your limited company.
Whether you’re exploring your first limited company buy-to-let or looking to switch to a better deal, understanding the Birmingham Midshires limited company lending criteria is crucial. BM Solutions remains a popular choice for landlords due to its competitive rates and streamlined process for SPVs. To learn more about your options, browse our expert guides on Birmingham Midshires mortgage products, BM Solutions product transfer options, and Birmingham Midshires remortgage solutions.