Understanding the BM Solutions limited company mortgage criteria is essential for landlords and property investors looking to expand their portfolio through a limited company structure. As one of the UK’s leading buy-to-let lenders, BM Solutions – part of the Lloyds Banking Group – offers a range of competitive mortgage products tailored to landlords. Whether you’re a first-time investor or an experienced portfolio landlord, knowing the eligibility requirements and lending criteria for 2025 can help you make confident, informed decisions.
What is a BM Solutions limited company mortgage?
A BM Solutions limited company mortgage is a buy-to-let mortgage offered to landlords who purchase or remortgage properties through a limited company, rather than in their personal name. This structure can offer tax efficiencies, particularly since changes to mortgage interest relief. BM Solutions only accepts applications from Special Purpose Vehicles (SPVs) – companies set up solely to hold and manage property. The company must be registered with Companies House and fall under specific SIC codes related to property letting. These mortgages are designed for experienced landlords and come with specific lending criteria, including minimum income requirements, experience in letting, and property type limitations. If you’re considering this route, it’s wise to review the full Birmingham Midshires mortgage options to ensure they align with your investment goals.
Who is eligible for a BM Solutions limited company mortgage?
Eligibility for a BM Solutions limited company mortgage is primarily geared towards experienced landlords operating through SPVs. The company must be registered in the UK and have the correct SIC code, such as 68209 (Other letting and operating of own or leased real estate). Directors and shareholders must be individuals – BM Solutions does not currently accept layered companies or corporate shareholders. Typically, all directors must be named on the application, and at least one applicant should have prior experience as a landlord. There are also age restrictions (usually 21 to 80 at the end of the mortgage term) and minimum income requirements. BM Solutions assesses affordability based on rental income, using a stress-tested interest coverage ratio (ICR). For full details, it’s worth exploring the Birmingham Midshires mortgage criteria or speaking with a specialist broker.
Can I do a BM Solutions product transfer on a limited company mortgage?
Yes, BM Solutions allows product transfers on limited company buy-to-let mortgages, subject to eligibility. A BM Solutions product transfer enables you to switch to a new rate with the same lender at the end of your current fixed or tracker period, without the need for a full remortgage. This can help you avoid early repayment charges and legal fees. However, the product transfer must be for the same limited company borrower, and the property details must remain unchanged. Product transfers can usually be arranged up to three months before the end of your current deal. It’s a straightforward process, and many landlords use this option to secure a new fixed rate while avoiding the hassle of switching lenders. Always compare the new rate against current market offerings to ensure it’s still competitive.
What types of properties are accepted under BM Solutions limited company mortgage criteria?
BM Solutions has specific property criteria for limited company buy-to-let mortgages. Standard residential properties such as houses and flats are generally acceptable, provided they meet minimum valuation and condition standards. However, certain property types are restricted or excluded. For example, BM Solutions typically does not lend on HMOs (Houses in Multiple Occupation), multi-unit freehold blocks, or properties above commercial premises. Flats in high-rise buildings or ex-local authority properties may be considered but are subject to stricter underwriting. The property must be located in England, Wales, or mainland Scotland, and meet minimum rental income thresholds based on the loan amount. If you’re unsure whether your property qualifies, a specialist broker can help assess your options or explore a Birmingham Midshires remortgage if you’re looking to switch an existing loan.
What is the minimum rental income required for a BM Solutions limited company mortgage?
BM Solutions uses a rental income-based affordability assessment for limited company mortgages. The rental income must cover at least 125% to 145% of the mortgage interest, depending on the applicant’s tax status and the type of mortgage. For limited companies, the standard stress rate is typically 5.5% or the initial pay rate plus 2%, whichever is higher. For example, if you’re applying for a mortgage of £150,000, the rental income must be sufficient to cover the stress-tested monthly payment multiplied by the required ICR. This ensures the property can generate enough income to support the mortgage, even if interest rates rise. BM Solutions may also consider background portfolio performance if you own multiple properties. It’s crucial to work with a broker who understands the nuances of BM Solutions’ affordability model for 2025.
Can first-time landlords apply for a BM Solutions limited company mortgage?
BM Solutions generally prefers experienced landlords for limited company buy-to-let mortgages. While they do not explicitly rule out first-time landlords, the criteria are more favourable to those with a proven track record in managing rental properties. At least one applicant should usually have owned and let a property for a minimum of 12 months. This helps demonstrate the ability to manage tenants, maintain properties, and handle the financial aspects of property investment. If you’re a first-time landlord, you may still be eligible, especially if you have strong personal income and a robust business plan. However, you may face more scrutiny during the underwriting process. If you’re new to property investment, consider starting with a personal name mortgage or speaking to a broker about other lenders who are more flexible with new landlords.
How many properties can I have with BM Solutions under a limited company?
BM Solutions supports portfolio landlords, but there are limits to how many properties you can hold with them. As of 2025, you can typically have up to three mortgaged properties with BM Solutions, including both personal and limited company loans. However, they will consider your entire portfolio when assessing affordability and risk. If you have more than four mortgaged buy-to-let properties across all lenders, you may be classified as a portfolio landlord, which triggers additional underwriting checks. These include a full review of your existing portfolio, rental income, and property values. While BM Solutions does not offer unlimited portfolio lending, they remain a popular choice for landlords with small to medium-sized portfolios. For larger portfolios, you may need to explore other specialist lenders or consult a broker for tailored advice.
Understanding the BM Solutions limited company mortgage criteria is key to building a successful property portfolio in 2025. Whether you’re considering a new purchase, a Birmingham Midshires remortgage, or a BM Solutions product transfer, staying informed helps you make the right financial decisions. For more expert insights, browse our full range of guides on Birmingham Midshires mortgage options and lender criteria tailored to UK landlords.