## BM Solutions Buy-to-Let Mortgage Guide: Everything You Need to Know
If you’re considering investing in rental property, a BM Solutions buy-to-let mortgage could be a strong option. As the specialist buy-to-let arm of Birmingham Midshires, BM Solutions offers a wide range of mortgage products tailored to landlords—from first-time investors to portfolio landlords. Known for competitive interest rates and a streamlined application process, BM Solutions is a popular choice among UK mortgage brokers and property investors alike.
In this comprehensive guide, we’ll explore everything you need to know about BM Solutions buy-to-let mortgages in 2025. Whether you’re a UK resident or an international investor, we’ll cover eligibility criteria, application steps, required documents, interest rates, and how BM Solutions compares to other lenders. This guide is designed to help you make informed decisions and navigate the mortgage process with confidence.
## Overview: Who Are 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 to new customers, BM Solutions continues to specialise in buy-to-let lending exclusively through intermediaries—meaning you must apply via a mortgage broker.
### A Brief History
Birmingham Midshires was originally formed through the merger of several building societies, including the Birmingham and Bridgwater Building Society. It became part of Halifax in the 1990s and was later absorbed into Lloyds Banking Group. Today, BM Solutions operates as a key player in the UK’s buy-to-let mortgage market.
### Services Offered
BM Solutions focuses solely on buy-to-let mortgages. Their key offerings include:
– Fixed-rate and tracker buy-to-let mortgages
– Products for individual landlords and limited companies
– Portfolio landlord support (for those with four or more properties)
– Let-to-buy mortgages
– Product transfers for existing customers
Because BM Solutions only deals with brokers, they provide a streamlined service for intermediaries, including a dedicated broker portal, fast processing times, and consistent lending criteria.
(See our full guide to buy-to-let mortgages for a broader overview of the market.)
## Eligibility & Requirements
To qualify for a BM Solutions buy-to-let mortgage, applicants must meet specific eligibility criteria. These requirements are designed to ensure landlords can manage the financial responsibilities of property investment.
### Who Can Apply?
BM Solutions accepts applications from:
– UK residents aged 21–80 (at the end of the mortgage term)
– First-time landlords and experienced investors
– Portfolio landlords (special criteria apply)
– Limited companies (via SPVs—Special Purpose Vehicles)
International investors, including expats, are not currently eligible for BM Solutions mortgages. For non-UK residents, alternative lenders may be more suitable (see our section on alternatives).
### Income Requirements
– Minimum earned income: £25,000 per annum (for at least one applicant)
– Rental income must meet a minimum Interest Coverage Ratio (ICR), typically 125%–145% of the mortgage interest at a stress rate of 5.5% (or higher depending on the product and applicant type)
### Property Criteria
BM Solutions will consider:
– Standard residential buy-to-let properties
– Houses in multiple occupation (HMOs) up to 5 bedrooms
– New-build flats and houses (subject to restrictions)
– Leasehold and freehold properties
They typically do not lend on:
– Holiday lets or Airbnb properties
– Multi-unit freehold blocks (MUFBs)
– Properties with commercial elements
### Required Documents
Applicants should be prepared to provide:
– Proof of income (payslips, SA302s, tax returns)
– Proof of ID and address (passport, utility bills)
– Tenancy agreement (if already let)
– Mortgage statements for existing properties
– Portfolio spreadsheet (for portfolio landlords)
(Read more about mortgage eligibility criteria for full documentation guidance.)
## Application Process Step-by-Step
BM Solutions operates exclusively through mortgage brokers, so the first step is to find a qualified intermediary. Here’s how the process typically unfolds:
### Step 1: Speak to a Mortgage Broker
Your broker will assess your financial situation, property plans, and borrowing needs. They’ll check your eligibility and recommend suitable BM Solutions products.
### Step 2: Decision in Principle (DIP)
The broker submits a DIP request to BM Solutions. This is a soft credit check and gives an indication of how much you could borrow.
### Step 3: Full Mortgage Application
Once you’ve found a property, your broker submits a full application. You’ll need to provide all supporting documents at this stage.
### Step 4: Valuation and Underwriting
BM Solutions arranges a property valuation, and their underwriters assess your application. This stage typically takes 5–10 working days.
### Step 5: Mortgage Offer
If approved, you’ll receive a formal mortgage offer. This is usually valid for 3–6 months.
### Step 6: Completion
Once legal work is complete, the mortgage funds are released and the purchase completes.
### Tips for a Smooth Process
– Use an experienced broker familiar with BM Solutions
– Prepare documents in advance
– Be responsive to information requests
– Ensure the property meets lender criteria
## Rates & Fees
BM Solutions offers competitive interest rates, particularly for fixed-rate products. However, it’s important to understand the full cost of borrowing.
### Interest Rates
As of 2025, typical BM Solutions buy-to-let mortgage rates include:
– 2-year fixed: from 4.89% (subject to LTV and product)
– 5-year fixed: from 5.25%
– Tracker rates: from 4.75% (above base rate)
Rates vary based on:
– Loan-to-value (LTV) ratio (max 75%)
– Property type
– Applicant type (individual vs limited company)
– Product fees
### Fees
Common fees include:
– Product fee: £995–£1,995 (can be added to the loan)
– Valuation fee: Free on some products, otherwise £200–£500
– Legal fees: Paid by the borrower (some products include free legals)
– Early repayment charges (ERCs): Typically 2%–5% during fixed period
### Total Cost of Borrowing
Always consider the APRC (Annual Percentage Rate of Charge) to understand the long-term cost. A lower headline rate may come with high fees, so compare total costs carefully.
## Pros & Cons
### Pros
– Competitive fixed and tracker rates
– Strong support for portfolio landlords
– Fast processing and broker support
– Wide range of products for individuals and limited companies
– Reliable reputation as part of Lloyds Banking Group
### Cons
– Only available via brokers—no direct applications
– Not suitable for holiday lets or Airbnb
– No support for international or expat borrowers
– Strict rental stress testing may limit borrowing
## Alternatives & Competitors
While BM Solutions is a top-tier buy-to-let lender, it’s worth comparing with other providers to find the best fit for your needs.
### Top Alternatives
1. **The Mortgage Works (TMW)** – Offers flexible criteria and supports HMOs and limited company applications.
2. **Paragon Bank** – Strong for portfolio landlords and specialist properties.
3. **Precise Mortgages** – Good for adverse credit and complex cases.
4. **Aldermore** – Supports MUFBs and more flexible income criteria.
5. **Santander** – Competitive rates but more conservative lending criteria.
Each lender has its own strengths, so working with a broker is essential to find the right match.
(See our lender comparison guide for more details.)
## FAQs
### 1. Can I apply for a BM Solutions mortgage as a first-time landlord?
Yes, BM Solutions accepts applications from first-time landlords, provided you meet the income and eligibility criteria. You’ll need a minimum income of £25,000 and a suitable property. However, lending may be more conservative compared to experienced landlords.
### 2. Does BM Solutions accept limited company applications?
Yes, BM Solutions offers buy-to-let mortgages to Special Purpose Vehicles (SPVs) set up as limited companies. The company must be registered in England or Wales and have appropriate SIC codes (e.g., 68209). Directors must provide personal guarantees.
### 3. What is the maximum loan-to-value (LTV) with BM Solutions?
BM Solutions typically offers up to 75% LTV on buy-to-let mortgages. This means you’ll need at least a 25% deposit. Some products may have lower LTV limits depending on the property or applicant type.
### 4. How long does the application process take?
From application to offer, the process usually takes 2–3 weeks, depending on valuation and underwriting times. Completion can take 4–8 weeks in total. Using a broker familiar with BM Solutions can help speed things up.
### 5. Can I remortgage with BM Solutions?
Yes, BM Solutions offers remortgage products for existing landlords. These include free valuations and legal services on selected deals. You can also do a product transfer if you’re an existing BM Solutions customer.
### 6. Are there early repayment charges?
Yes, most BM Solutions fixed-rate products come with early repayment charges (ERCs), typically 2%–5% of the outstanding balance during the fixed period. Always check the product terms before committing.
### 7. What types of properties are accepted?
BM Solutions accepts standard buy-to-let properties, including houses and flats. They also accept small HMOs (up to 5 bedrooms). However, they don’t lend on holiday lets, MUFBs, or properties with commercial elements.
### 8. Can I get a BM Solutions mortgage if I’m self-employed?
Yes, self-employed applicants are accepted. You’ll need to provide at least two years of accounts or SA302s and meet the minimum income threshold. Rental income must also meet stress test requirements.
### 9. Does BM Solutions offer interest
