Whether you’re a seasoned landlord or a first-time buy-to-let investor, understanding how lenders assess rental income is crucial. The BM Solutions rental income calculator is a key tool used by brokers and landlords to determine how much you can borrow on a buy-to-let mortgage. As part of the Birmingham Midshires brand, BM Solutions is one of the UK’s leading lenders for landlords, known for its straightforward lending criteria and competitive rates. If you’re planning to expand your property portfolio in 2025 or looking to remortgage an existing rental, knowing how this calculator works can help you plan ahead with confidence.
What is the BM Solutions rental income calculator?
The BM Solutions rental income calculator is a tool used to assess how much you can borrow on a buy-to-let mortgage based on the rental income of the property. It applies specific stress rates and affordability criteria to ensure the rental income sufficiently covers the mortgage repayments. This calculator is typically used by mortgage brokers to pre-qualify landlords for lending through BM Solutions, part of the Birmingham Midshires group.
In 2025, the calculator continues to reflect BM Solutions’ criteria, including interest coverage ratios (ICRs) and stress testing at a notional interest rate. For most standard buy-to-let applications, BM Solutions requires the rental income to cover at least 145% of the mortgage payment, stressed at 5.5% interest. The exact figures may vary depending on the applicant’s tax status and whether the application is in a personal name or through a limited company.
Why is the rental income calculator important for landlords?
For landlords, the BM Solutions rental income calculator is essential because it determines whether your property’s rental income meets the lender’s affordability criteria. Without meeting these requirements, your mortgage application may be declined or you may be offered a lower loan amount than anticipated.
Using the calculator early in the process helps you understand what rental income is needed to secure a specific loan size. It also allows you to compare properties and assess whether they are viable investments within BM Solutions’ lending framework. This is especially useful if you’re considering a Birmingham Midshires remortgage or expanding your portfolio in 2025.
How does BM Solutions calculate rental income affordability?
BM Solutions uses a stress-tested affordability model to calculate how much you can borrow. The rental income must cover a percentage of the mortgage interest payment, known as the Interest Coverage Ratio (ICR). For most individual landlords, the ICR is set at 145%, stressed at an interest rate of 5.5%.
For example, if your monthly mortgage interest is £500, your rental income must be at least £725 (£500 x 145%) to meet the affordability criteria. For limited company applications, the ICR may be lower, typically around 125%, which can allow for higher borrowing. These figures may be adjusted in 2025 depending on market conditions and regulatory changes, so it’s important to use the latest version of the calculator or speak with a mortgage broker.
Can I use the BM Solutions rental income calculator myself?
While the BM Solutions rental income calculator is primarily a broker tool, landlords can request calculations through their adviser or broker. BM Solutions does not currently offer a public-facing version of the calculator, as it requires professional interpretation of results and consideration of other lending criteria.
If you’re considering a Birmingham Midshires mortgage, your broker will use the calculator to assess your eligibility and help structure your application accordingly. They can also advise on how different rental yields, property types, and ownership structures (e.g. personal vs limited company) affect the borrowing amount.
Does the rental income calculator apply to product transfers?
No, the BM Solutions rental income calculator is generally not used for product transfers. A BM Solutions product transfer allows existing borrowers to switch to a new rate without a full affordability assessment or rental income recheck, as long as there are no changes to the loan amount or term.
This makes product transfers a convenient option for landlords looking to secure a better rate in 2025 without the need for a new application or rental assessment. However, if you are increasing your loan or changing ownership structure, a full affordability check using the rental income calculator may be required.
What factors can affect the results of the rental income calculator?
Several factors influence the outcome of the BM Solutions rental income calculator, including:
- Rental income amount and yield
- Applicant’s tax status (basic or higher-rate taxpayer)
- Ownership structure (individual vs limited company)
- Loan term and interest rate
- Property type and location
Higher-rate taxpayers may face stricter affordability criteria due to tax relief changes, while limited company landlords often benefit from more favourable calculations. In 2025, with evolving tax rules and market conditions, it’s more important than ever to work with a broker who understands how to optimise your application using the calculator.
Can the calculator help with remortgaging an existing property?
Yes, the rental income calculator is often used when applying for a Birmingham Midshires remortgage. If you’re switching lenders or increasing your borrowing, BM Solutions will assess the rental income to ensure it meets their affordability standards.
However, if you’re simply switching rates with BM Solutions via a product transfer, the rental income calculator is not needed. For landlords looking to raise capital or consolidate debt in 2025, a remortgage with a full affordability check may be the right solution. A broker can help you run the numbers and determine the best course of action based on your rental income and financial goals.
Understanding how the BM Solutions rental income calculator works is key to successful buy-to-let financing. Whether you’re planning a Birmingham Midshires remortgage, a new purchase, or a BM Solutions product transfer, knowing your rental income position gives you a clear advantage. To explore more about Birmingham Midshires mortgage options and get expert advice tailored to your portfolio, browse our latest guides and tools today.
