## BM Solutions Buy-to-Let Mortgage Guide for 2025: Everything You Need to Know
If you’re considering investing in rental property, a BM Solutions buy-to-let mortgage could be a smart financing option. BM Solutions, part of Birmingham Midshires, is one of the UK’s most established lenders in the buy-to-let market. Known for competitive interest rates and a streamlined application process, BM Solutions caters specifically to landlords—whether you’re a first-time investor or managing a large portfolio.
In this comprehensive 2025 guide, we’ll walk you through everything you need to know about securing a buy-to-let mortgage with BM Solutions. From eligibility criteria and required documents to interest rates and how to apply, this resource is designed to help both UK residents and international borrowers make informed decisions.
Whether you’re planning your first buy-to-let investment or looking to remortgage an existing property, understanding how BM Solutions operates is essential. Let’s explore what makes Birmingham Midshires a trusted name in property finance and how you can benefit from their tailored mortgage products.
## Overview: BM Solutions and Birmingham Midshires
BM Solutions is the intermediary-only buy-to-let arm of Birmingham Midshires, which itself is a division of Lloyds Banking Group. While Birmingham Midshires no longer offers new residential mortgages directly to consumers, BM Solutions continues to serve the buy-to-let market exclusively through mortgage brokers.
### A Brief History
Birmingham Midshires has been a recognised name in UK banking since the 1980s, originally formed from the merger of several building societies. In 1999, it became part of the Halifax Group, which later merged into Lloyds Banking Group. BM Solutions was launched in the early 2000s to focus on intermediary-based buy-to-let lending.
### What BM Solutions Offers
BM Solutions specialises in:
– Buy-to-let mortgages for individual landlords and limited companies
– Portfolio landlord solutions
– Remortgage options
– Competitive fixed and tracker rate products
– Flexible lending criteria
Because BM Solutions only operates through brokers, borrowers must apply via a qualified mortgage adviser. This ensures applicants receive tailored advice and that applications meet the lender’s criteria.
BM Solutions is particularly popular with landlords looking for:
– Straightforward application processes
– Competitive interest rates
– Transparent lending criteria
– Strong support for portfolio landlords
(See our full guide to buy-to-let mortgages for a broader overview of the UK market.)
## Eligibility & Requirements
To qualify for a BM Solutions buy-to-let mortgage, applicants must meet specific eligibility criteria. These requirements ensure that borrowers are financially capable and that the property is suitable for rental purposes.
### Who Can Apply?
BM Solutions lends to:
– UK residents aged 21 to 80 (at the end of the mortgage term)
– Employed, self-employed, and retired individuals
– First-time landlords and portfolio landlords
– Limited companies (via SPVs—Special Purpose Vehicles)
BM Solutions does not currently offer mortgages to non-UK residents, although some expat landlords may qualify under specific conditions through affiliated brokers.
### Income Requirements
– Minimum earned income: £25,000 per annum (for individual applicants)
– Rental income must cover at least 125%–145% of the mortgage interest (depending on tax status and product type)
– BM Solutions uses a rental stress test to assess affordability, typically based on a notional interest rate of 5.5%
### Property Criteria
– Property must be in the UK (excluding Northern Ireland)
– Minimum property value: £50,000
– Maximum loan-to-value (LTV): up to 75%
– Acceptable property types: standard houses and flats, HMOs (up to 5 bedrooms), new builds (with restrictions)
– Unacceptable properties: bedsits, properties above commercial premises (case-by-case), ex-local authority flats (some restrictions)
### Required Documents
Applicants will typically need to provide:
– Proof of ID and address
– Proof of income (payslips, SA302s, or tax returns)
– Bank statements (usually 3 months)
– Existing mortgage statements (if applicable)
– Tenancy agreements (for remortgages)
– Limited company documents (if applying via SPV)
(Read more about mortgage eligibility criteria.)
## Application Process Step-by-Step
Applying for a BM Solutions buy-to-let mortgage involves working with a mortgage broker. Here’s a step-by-step breakdown of the process:
### Step 1: Speak to a Mortgage Broker
Since BM Solutions is an intermediary-only lender, you must apply through a registered mortgage broker. Your broker will assess your financial situation, discuss your goals, and recommend suitable products.
### Step 2: Get a Decision in Principle (DIP)
Your broker will submit a DIP application to BM Solutions. This includes basic financial information and a credit check. If approved, you’ll receive an indication of how much you can borrow.
### Step 3: Submit Full Application
Once you’ve found a property (or are ready to remortgage), your broker will submit the full mortgage application. This includes:
– Personal and financial details
– Property information
– Supporting documents
### Step 4: Valuation and Underwriting
BM Solutions will instruct a property valuation to confirm the market value and rental potential. Underwriters will review your application and documents.
### Step 5: Mortgage Offer
If approved, BM Solutions will issue a formal mortgage offer. This is typically valid for 3–6 months.
### Step 6: Completion
Your solicitor will handle the legal work. Once everything is in place, funds are released, and the mortgage completes.
### Timeline
– DIP: 1–2 working days
– Full application to offer: 1–3 weeks (depending on valuation and documentation)
– Completion: 4–8 weeks total (on average)
Tip: Ensure all documents are accurate and up to date to avoid delays.
## Rates & Fees
BM Solutions offers a range of competitive interest rates and fee structures for buy-to-let mortgages. Rates vary depending on the product type, loan-to-value ratio, and whether you’re applying as an individual or limited company.
### Interest Rates
As of early 2025, typical BM Solutions buy-to-let mortgage rates include:
– 2-year fixed: from 4.89% (up to 60% LTV)
– 5-year fixed: from 5.19% (up to 75% LTV)
– Tracker rates: from 4.75% (base rate + margin)
Note: Rates are subject to change and depend on the Bank of England base rate and market conditions.
### Fees
BM Solutions charges the following fees:
– Product fee: £0 to £1,995 (can be added to the loan)
– Valuation fee: often free for standard properties
– Application fee: typically none
– Legal fees: paid separately via your solicitor
### Other Costs
– Early repayment charges (ERCs) apply during fixed-rate periods
– Reversion rate: once the fixed/tracker period ends, the mortgage reverts to BM Solutions’ standard variable rate (SVR), currently around 7.99%
– Broker fees: some brokers may charge a fee for their services
Always compare the total cost of borrowing, not just the interest rate.
## Pros & Cons of BM Solutions Buy-to-Let Mortgages
### Pros
– Competitive interest rates for both individuals and limited companies
– Strong support for portfolio landlords
– Fast application process with clear criteria
– No minimum experience required for first-time landlords
– Free standard valuations on many products
### Cons
– Only accessible through mortgage brokers
– Limited to UK residents (expats may need specialist advice)
– Strict rental stress testing may limit borrowing
– Higher product fees on some deals
– No direct customer service for borrowers (broker acts as intermediary)
## Alternatives & Competitors
While BM Solutions is a leading name in the buy-to-let market, several other lenders offer competitive alternatives:
### The Mortgage Works (TMW)
– Subsidiary of Nationwide
– Strong for first-time landlords
– Offers up to 80% LTV
### Paragon Bank
– Specialist lender for portfolio landlords and HMOs
– Offers complex case underwriting
### Precise Mortgages
– Good for limited company and adverse credit applicants
– Flexible on property types
### Aldermore
– Flexible underwriting
– Good for multi-unit and semi-commercial properties
Each lender has its own strengths, so it’s essential to compare based on your specific needs. A qualified broker can help you navigate these options effectively.
(See our comparison of top UK buy-to-let lenders.)
## 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 the income and credit criteria. You’ll need to demonstrate a minimum income of £25,000 and pass the rental stress test. A broker can guide you through the process.
### 2. Does BM Solutions lend to limited companies?
Yes. BM Solutions offers buy-to-let mortgages to SPVs (Special Purpose Vehicles) set up as limited companies. You’ll need to provide company accounts, director details, and meet specific lending criteria.
### 3. What is the minimum deposit required?
The minimum deposit is typically 25%, meaning the maximum LTV is 75%. Some products may require a larger deposit, especially for new builds or HMOs.
### 4. Can I remortgage my existing buy-to-let with BM Solutions?
Yes. BM Solutions offers remortgage products with or without capital raising. Free valuation and legal fees are often included in remortgage deals.
### 5. What rental income do I need?
Rental income must cover at least 125%–145% of the mortgage interest, depending on your tax status and the product. BM Solutions uses a notional stress rate (e.g., 5.5%) to calculate this.
### 6. How long does the application process take?
From DIP to completion, the process typically takes
