## BM Solutions Buy-to-Let Mortgage: A Complete 2025 Guide
If you’re considering investing in property, a BM Solutions buy-to-let mortgage could be a smart financing choice. As the specialist buy-to-let arm of Birmingham Midshires, BM Solutions offers a range of competitive mortgage products tailored to landlords, whether you’re a first-time investor or expanding your portfolio. Known for its efficient service and broker-only access, BM Solutions is a key player in the UK’s buy-to-let mortgage market.
In this comprehensive guide, we’ll explore everything you need to know about BM Solutions buy-to-let mortgages in 2025. From eligibility criteria and application steps to current interest rates and required documentation, we’ll help you understand how to secure a mortgage with Birmingham Midshires through BM Solutions. Whether you’re a UK resident or an international investor, this guide provides practical, up-to-date insights to support your mortgage planning and application process.
## Overview: BM Solutions and Birmingham Midshires
BM Solutions is the buy-to-let mortgage brand of Birmingham Midshires, a division of Lloyds Banking Group. While Birmingham Midshires no longer offers residential mortgages directly to the public, BM Solutions continues to provide a wide range of buy-to-let mortgage products via authorised mortgage brokers.
### History and Background
Birmingham Midshires has a long-standing reputation in the UK mortgage market, dating back to the 1980s. After becoming part of the Halifax group and subsequently Lloyds Banking Group, its focus shifted exclusively to savings and buy-to-let lending. BM Solutions was established as a dedicated brand to serve the needs of landlords and property investors.
### Services Offered
BM Solutions specialises in:
– Buy-to-let mortgages for individuals and limited companies
– Let-to-buy mortgages
– Portfolio landlord lending
– Remortgaging options for existing landlords
The lender operates exclusively through intermediaries, meaning you can’t apply directly. Instead, you must go through a BM Solutions-approved mortgage broker, ensuring expert advice and compliance with lending criteria.
BM Solutions is known for its fast processing times, competitive rates, and robust online platform for brokers. It also offers tools for portfolio landlords to manage multiple properties efficiently.
## Eligibility & Requirements
Before applying for a BM Solutions buy-to-let mortgage, it’s essential to understand the eligibility criteria and documentation requirements. BM Solutions has specific lending rules designed to ensure borrowers can responsibly manage their mortgage obligations.
### Who Can Apply?
BM Solutions only lends to UK residents. International or expat borrowers are not eligible. Key eligibility criteria include:
– Minimum age: 25 years old
– Maximum age at end of term: 75 years
– Must be a UK taxpayer
– Must own your own home (residential owner-occupier)
– Maximum of three applicants per mortgage
### Income Requirements
BM Solutions does not require a minimum personal income for standard buy-to-let applications. However, for first-time landlords or let-to-buy applicants, a minimum income of £25,000 per annum is typically required.
Rental income is the primary affordability measure. BM Solutions uses a rental stress test to ensure the property generates sufficient rental yield to cover mortgage payments. As of 2025:
– Standard stress rate: 5.5%
– Rental coverage ratio: 145% for individual borrowers, 125% for limited companies
### Property Criteria
BM Solutions will lend on a wide range of property types, including:
– Standard houses and flats
– New builds (subject to stricter criteria)
– HMOs (Houses in Multiple Occupation) – for portfolio landlords only
– Leasehold flats (minimum 70 years remaining)
They typically do not lend on:
– Studio flats under 30m²
– Properties above commercial premises
– Non-standard construction types
### Required Documents
To apply, you’ll need to provide:
– Proof of ID (passport or driving licence)
– Proof of address (utility bill, council tax)
– Proof of income (payslips or SA302s for self-employed)
– Existing mortgage statements (if applicable)
– Tenancy agreements for existing rental properties
– Portfolio spreadsheet (for landlords with 4+ properties)
(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 several steps, all facilitated through an authorised broker. Here’s a breakdown of the typical process:
### Step 1: Speak to a Mortgage Broker
Since BM Solutions is broker-only, your first step is to find an authorised mortgage broker. They will assess your circumstances, recommend suitable products, and initiate the application.
Tip: Choose a broker with experience in buy-to-let and familiarity with BM Solutions’ systems.
### Step 2: Agreement in Principle (AIP)
Your broker will run a soft credit check and submit an Agreement in Principle. This gives you an indication of how much you can borrow and whether you meet BM Solutions’ criteria.
### Step 3: Submit Full Application
Once you’ve found a property or are ready to remortgage, your broker will submit the full application, including all required documents.
### Step 4: Valuation and Underwriting
BM Solutions will instruct a property valuation to ensure the rental income and property value meet their lending standards. Simultaneously, underwriters will review your application and documents.
### Step 5: Mortgage Offer
If approved, you’ll receive a formal mortgage offer. This is usually valid for 6 months.
### Step 6: Completion
Your solicitor will handle the legal work, and once everything is in place, the mortgage will complete. Funds are released to either purchase the property or pay off your existing lender in a remortgage.
### Timeline
– AIP: 1–2 days
– Full application to offer: 7–14 days (subject to valuation)
– Completion: 4–8 weeks (depending on legal work)
## Rates & Fees
Understanding the cost of a BM Solutions buy-to-let mortgage is crucial for planning your investment. Here’s what you need to know about interest rates, fees, and ongoing costs in 2025.
### Interest Rates
BM Solutions offers:
– Fixed-rate mortgages (2, 3, 5-year terms)
– Tracker mortgages (linked to Bank of England base rate)
– Lifetime tracker options (for some landlords)
Typical fixed rates in early 2025:
– 2-year fixed: from 4.89% (subject to LTV and product fee)
– 5-year fixed: from 4.59%
Rates vary based on:
– Loan-to-value (LTV) – lower LTV = better rate
– Type of borrower (individual vs limited company)
– Property type and rental income
### Product Fees
Most BM Solutions products come with one of the following:
– £0 fee (higher interest rate)
– £995 fee (mid-range rate)
– £1,995 fee (lowest rate)
Fees can be added to the loan or paid upfront.
### Valuation & Legal Fees
– Valuation: Free for standard properties under certain products
– Legal fees: Paid by borrower; some remortgage deals include free legals
### Early Repayment Charges (ERCs)
Fixed-rate products typically have ERCs:
– 2-year fixed: 2% in year 1, 1% in year 2
– 5-year fixed: 5%, 4%, 3%, 2%, 1% over the term
Always check the Key Facts Illustration (KFI) for full fee details.
## Pros & Cons
### Pros
– Competitive rates for both individuals and limited companies
– Fast processing and efficient online systems
– No minimum income for experienced landlords
– Free valuations and legals on some remortgage products
– Strong support for portfolio landlords
### Cons
– Broker-only access – no direct applications
– Not available to non-UK residents or expats
– Limited lending on non-standard properties
– Strict rental stress tests can limit borrowing
BM Solutions is best suited for UK-based landlords looking for a reliable, streamlined mortgage process with competitive pricing.
## Alternatives & Competitors
While BM Solutions is a leading name in buy-to-let lending, it’s worth comparing other lenders based on your needs.
### Key Competitors
– **The Mortgage Works (TMW)** – Offers flexible criteria and products for both new and experienced landlords.
– **Paragon Bank** – Strong in the portfolio landlord space with specialist HMO and multi-unit lending.
– **Precise Mortgages** – Good for limited company and complex cases.
– **Santander** – Offers straightforward products but is more conservative on rental stress tests.
– **NatWest** – Competitive rates for standard buy-to-let properties.
### How BM Solutions Compares
– **Speed**: Among the fastest in processing
– **Rates**: Competitive, especially with product fees
– **Criteria**: More flexible than high street banks but stricter than specialist lenders
– **Broker Access**: Required, which can be a barrier for DIY investors
(See our comparison of the best buy-to-let mortgage lenders in 2025.)
## FAQs
### 1. Can I get a BM Solutions mortgage as a first-time landlord?
Yes, BM Solutions does lend to first-time landlords, but you must be a homeowner and typically earn at least £25,000 per year. You’ll also need to meet stricter rental stress tests.
### 2. Does BM Solutions offer mortgages to limited companies?
Yes, BM Solutions provides buy-to-let mortgages for limited companies (SPVs). The process and rates are similar, but you’ll need to provide company accounts and director details.
### 3. Can I remortgage my existing buy-to-let with BM Solutions?
Absolutely. BM Solutions offers remortgage products with free valuation and legal services. You can also raise capital for further property purchases.
### 4. What is the maximum number of properties I can own?
BM Solutions allows up to 10 mortgaged buy-to-let properties with them, and up to
