## BM Solutions Buy-to-Let Mortgage Guide: Everything You Need to Know
If you’re considering investing in property, securing a BM Solutions buy-to-let mortgage could be a smart move. BM Solutions, the buy-to-let arm of Birmingham Midshires, is one of the UK’s most established lenders in the rental property market. Known for its competitive rates and broker-only access, BM Solutions offers a range of mortgage products tailored to landlords—from first-time investors to seasoned portfolio holders.
In this comprehensive guide, we’ll walk you through everything you need to know about BM Solutions buy-to-let mortgages in 2025. We’ll cover eligibility requirements, the application process, current interest rates, required documents, and how brokers play a vital role. Whether you’re a UK resident or an international investor, you’ll find practical, up-to-date advice to help you make informed decisions.
## Overview: BM Solutions and Birmingham Midshires
BM Solutions is a specialist lending brand under Birmingham Midshires, which itself is part of the Lloyds Banking Group. While Birmingham Midshires previously offered a range of residential mortgage products, it now focuses exclusively on buy-to-let lending through BM Solutions.
BM Solutions operates on an intermediary-only model, meaning their mortgage products are available only through authorised mortgage brokers. This approach ensures borrowers receive professional advice and that applications meet strict underwriting standards.
BM Solutions has built a strong reputation among landlords for:
– Competitive fixed and tracker rates
– A wide range of buy-to-let mortgage products
– Support for portfolio landlords
– Online tools and a streamlined application process for brokers
Their focus on buy-to-let lending has made them a go-to choice for property investors across the UK. Whether you’re purchasing your first rental property or refinancing a portfolio of 10+ homes, BM Solutions has options that cater to various needs.
In 2025, the lender continues to adapt to regulatory changes and market trends, offering mortgage products that reflect the realities of the UK rental market, including EPC requirements, stress testing, and affordability assessments.
## Eligibility & Requirements
Before applying for a BM Solutions buy-to-let mortgage, it’s essential to understand the eligibility criteria. BM Solutions has clear guidelines to ensure borrowers are financially stable and that the property meets lending standards.
### Who Can Apply?
– **UK residents**: BM Solutions primarily lends to UK-based individuals with permanent residency.
– **Age**: Applicants must be at least 25 years old and no older than 75 at the end of the mortgage term.
– **Experience**: First-time landlords are accepted, but portfolio landlords (those with four or more mortgaged properties) must meet additional criteria.
– **Credit history**: A good credit score is essential. BM Solutions does not typically accept applicants with recent CCJs, defaults, or bankruptcies.
### Income Requirements
– **Minimum income**: Applicants must have a minimum earned income of £25,000 per annum (excluding rental income).
– **Affordability**: BM Solutions uses a rental stress test to assess affordability. Typically, the rental income must cover 125%–145% of the mortgage payment at a notional interest rate (usually 5.5%).
### Property Criteria
– **Property types**: Standard buy-to-let properties, HMOs (up to 5 bedrooms), and new builds are accepted, subject to valuation.
– **Minimum value**: Properties must usually be worth at least £50,000 (£100,000 in London).
– **Letting restrictions**: Properties must be let on an Assured Shorthold Tenancy (AST) agreement. Short-term lets or holiday lets are not accepted.
### Required Documents
– Proof of ID (passport or driving licence)
– Proof of address (utility bill or bank statement)
– Proof of income (payslips, SA302s for self-employed)
– Existing mortgage statements (if applicable)
– Tenancy agreements (for existing landlords)
– Portfolio spreadsheet (for portfolio landlords)
(See our full guide on mortgage eligibility criteria for more details.)
## Application Process Step-by-Step
Applying for a BM Solutions buy-to-let mortgage involves working with a qualified mortgage broker. Here’s how the process typically unfolds:
### Step 1: Speak to a Mortgage Broker
BM Solutions mortgages are only available through intermediaries. Your first step is to consult a broker with experience in buy-to-let lending. They’ll assess your financial situation, goals, and property details to recommend suitable products.
### Step 2: Pre-Application Checks
Your broker will conduct affordability assessments and credit checks. They’ll also ensure the property meets BM Solutions’ criteria and that your documentation is in order.
### Step 3: Decision in Principle (DIP)
A DIP is a preliminary approval based on your financial profile. It gives you an idea of how much you can borrow and is often required by estate agents when making an offer on a property.
### Step 4: Full Mortgage Application
Once you have a property under offer, your broker will submit a full application. This includes uploading all required documents and property details to BM Solutions’ online portal.
### Step 5: Valuation and Underwriting
BM Solutions will instruct a property valuation to confirm its market value and rental potential. The underwriting team will review your application and documents.
### Step 6: Mortgage Offer
If the application is successful, you’ll receive a formal mortgage offer. This is typically valid for 3–6 months.
### Step 7: Completion
Your solicitor will handle the legal work. Once everything is in place, funds are released, and the mortgage completes.
### Timeline
The process usually takes 3–6 weeks from application to completion, depending on valuation and legal work.
## Rates & Fees
BM Solutions offers a range of fixed and tracker buy-to-let mortgage products. Rates and fees can vary depending on the loan-to-value (LTV), property type, and borrower profile.
### Interest Rates (2025)
As of early 2025, BM Solutions offers:
– **2-year fixed rates**: Starting from 4.79% at 60% LTV
– **5-year fixed rates**: Starting from 4.99% at 60% LTV
– **Tracker rates**: Typically 0.75%–1.25% above the Bank of England base rate
Rates are subject to change and depend on your broker’s access to exclusive deals.
### Fees
– **Product fees**: Usually £995–£1,995, often added to the loan
– **Valuation fees**: Free for standard properties; higher for HMOs or unusual properties
– **Broker fees**: Vary by broker; some charge a flat fee, others a percentage
– **Early repayment charges (ERCs)**: Apply during fixed/tracker periods, typically 1%–5%
### Overall Costs
When calculating the total cost of your mortgage, consider:
– Monthly repayments
– Arrangement and legal fees
– Maintenance and letting costs
– Tax implications (e.g. Section 24 mortgage interest relief changes)
(See our full guide to buy-to-let mortgages for more on costs and tax.)
## Pros & Cons
### Pros
– **Broker-only access**: Ensures professional guidance
– **Competitive rates**: Especially for experienced landlords
– **Strong reputation**: Backed by Lloyds Banking Group
– **Online tools**: Efficient application tracking for brokers
– **Portfolio support**: Tailored solutions for landlords with multiple properties
### Cons
– **No direct applications**: Must go through a broker
– **Strict criteria**: Not suitable for adverse credit or unusual properties
– **Limited flexibility**: No support for holiday lets or Airbnb-style rentals
– **Product fees**: Can be high, especially on lower-rate deals
## Alternatives & Competitors
While BM Solutions is a leading buy-to-let lender, it’s worth comparing alternatives:
### The Mortgage Works (TMW)
– Part of Nationwide Building Society
– Accepts first-time landlords and limited companies
– Offers flexible criteria for HMOs and multi-units
### Paragon Bank
– Specialist in portfolio landlord lending
– Supports limited company structures
– Offers products for HMOs and semi-commercial properties
### Aldermore
– Accepts non-standard properties
– More flexible with self-employed income
– Good for landlords with complex portfolios
### Precise Mortgages
– Specialist lender for adverse credit
– Offers bridging and refurbishment buy-to-let options
Each lender has unique strengths, so it’s essential to consult a broker who can compare the market based on your circumstances.
## FAQs
### 1. Can I get a BM Solutions buy-to-let mortgage as a first-time landlord?
Yes, BM Solutions accepts first-time landlords, provided you meet their income and credit criteria. However, your application may be subject to stricter underwriting and rental stress testing. A broker can help present your case effectively.
### 2. Does BM Solutions lend to limited companies?
No, as of 2025, BM Solutions does not offer buy-to-let mortgages to limited companies. All applications must be in individual names. If you’re looking for limited company options, consider lenders like Paragon or The Mortgage Works.
### 3. What is the minimum income required?
BM Solutions requires a minimum earned income of £25,000 per annum (excluding rental income). This ensures you can cover mortgage payments during void periods and meet affordability criteria.
### 4. Can international or expat borrowers apply?
BM Solutions typically only lends to UK residents with permanent residency status. Expat and international investors may need to explore specialist lenders such as Skipton International or HSBC Expat.
### 5. What types of properties does BM Solutions accept?
BM Solutions accepts standard residential properties, new builds, and HMOs up to 5 bedrooms. They do not lend on holiday lets, commercial properties, or properties with non-standard construction.
### 6. How is rental income assessed?
Rental income must typically cover 125%–145% of the mortgage payment, calculated at a notional rate
