If you’re a UK landlord or property investor considering short-term lets, a BM Solutions holiday let mortgage could be the ideal solution. As part of Birmingham Midshires, BM Solutions is a well-known and trusted lender for buy-to-let and holiday let mortgages. With 2025 shaping up to be another strong year for UK staycations, many landlords are exploring holiday lets as a profitable alternative to traditional rentals. In this guide, we answer the most common questions about BM Solutions holiday let mortgages to help you make informed decisions.
What is a BM Solutions holiday let mortgage?
A BM Solutions holiday let mortgage is a specialist mortgage product designed for landlords who want to let out a property on a short-term basis to holidaymakers. Unlike standard buy-to-let mortgages, holiday let mortgages are tailored for properties that are rented out for short stays rather than long-term tenancies. BM Solutions, the intermediary-only arm of Birmingham Midshires, offers competitive fixed and tracker rates for holiday let properties across the UK. These mortgages are available to individuals and limited companies, subject to eligibility. If you’re already a BM Solutions customer, you may also explore a BM Solutions product transfer to switch to a holiday let product without remortgaging externally.
Who is eligible for a BM Solutions holiday let mortgage?
To qualify for a BM Solutions holiday let mortgage, applicants must meet specific criteria. Typically, you need to be an experienced landlord or homeowner with a good credit history. BM Solutions usually requires a minimum income—often around £25,000 per annum—and the property must be located in a desirable UK holiday destination. The property should be suitable for short-term letting and meet BM Solutions’ valuation and rental income requirements. It’s also worth noting that holiday let mortgages are only available through mortgage brokers, so working with an experienced adviser is essential. If you’re already with Birmingham Midshires, you may also consider a Birmingham Midshires mortgage review to see if a holiday let product is right for your portfolio in 2025.
How does a holiday let mortgage differ from a standard buy-to-let mortgage?
While both mortgage types are designed for rental properties, a holiday let mortgage is specifically intended for short-term rentals, such as Airbnb or seasonal holiday homes. The key differences include how rental income is assessed, the expected occupancy rates, and the property’s location. BM Solutions will typically assess the property’s income potential based on projected holiday rental income rather than a standard monthly rent. Additionally, holiday let properties must often meet higher standards and be located in areas with strong tourism demand. If you’re currently on a buy-to-let deal, you may want to explore a Birmingham Midshires remortgage to switch to a holiday let mortgage, especially if your usage model has changed in 2025.
Can I use a BM Solutions holiday let mortgage for Airbnb?
Yes, BM Solutions does allow properties to be let on platforms like Airbnb, provided the property is used as a furnished holiday let and meets the lender’s criteria. This includes being available to let for a minimum number of days per year and not being occupied by the owner for extended periods. The property must also generate sufficient rental income to meet the lender’s stress testing requirements. It’s important to disclose your intention to use platforms like Airbnb when applying. Using the property in a way not approved by the lender could breach your mortgage terms. For landlords already with BM Solutions, a BM Solutions product transfer to a holiday let mortgage may be an efficient way to adapt your portfolio to the growing short-term rental market in 2025.
What are the deposit requirements for a BM Solutions holiday let mortgage?
BM Solutions typically requires a minimum deposit of 25% for holiday let mortgages, although this can vary depending on the property’s location and your financial profile. In some cases, a higher deposit may be needed to secure the most competitive rates or if the property has unique features. The loan-to-value (LTV) ratio is a crucial factor in determining your eligibility and the interest rate you’ll receive. A larger deposit can also help you pass the lender’s affordability checks more easily, especially if you’re relying on seasonal rental income. If you’re unsure about your options, a mortgage broker can help you assess whether a Birmingham Midshires mortgage is suitable for your holiday let plans in 2025.
Are there any restrictions on the type or location of the property?
Yes, BM Solutions has specific criteria for the type and location of holiday let properties. Generally, the property must be in a recognised UK holiday destination with strong rental demand. It should be a standard construction property—non-standard builds like thatched cottages or properties with flat roofs may not be accepted. Additionally, the property must be suitable for year-round letting and comply with local planning and licensing regulations. BM Solutions may also have restrictions on properties in remote or hard-to-access areas. If you’re considering converting an existing property into a holiday let, it’s worth reviewing your current Birmingham Midshires remortgage options to ensure your mortgage product aligns with your new strategy in 2025.
Can I switch an existing BM Solutions mortgage to a holiday let product?
Yes, if you already have a mortgage with BM Solutions, you may be able to switch to a holiday let product through a BM Solutions product transfer. This process allows you to move to a new rate or product without the need for a full remortgage, which can save time and money. However, not all existing BM Solutions mortgages are eligible for a holiday let switch, so it’s important to speak with your broker or adviser. They can assess your current mortgage, the property’s suitability, and whether the proposed use as a holiday let meets BM Solutions’ lending criteria in 2025.
Whether you’re entering the holiday let market for the first time or looking to optimise your existing portfolio, BM Solutions offers a range of flexible mortgage options tailored to UK landlords. To explore your options further, browse our expert guides on Birmingham Midshires mortgage products, BM Solutions product transfers, and Birmingham Midshires remortgage solutions. Our team is here to help you make confident, informed decisions in 2025 and beyond.
