## 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 smart financing option. BM Solutions, part of Birmingham Midshires and a division of Lloyds Banking Group, is a specialist lender well-known in the UK for providing competitive buy-to-let mortgage products. Whether you’re a first-time landlord or expanding your property portfolio, understanding how BM Solutions operates, their eligibility criteria, and their application process is essential.
In this comprehensive guide, we’ll explore everything you need to know about BM Solutions buy-to-let mortgages, including interest rates, fees, required documents, and how brokers can help. We’ll also compare BM Solutions with other lenders and answer the most frequently asked questions. Our goal is to provide you with the most up-to-date and authoritative resource for 2025 and beyond.
## Overview: Who Are BM Solutions and Birmingham Midshires?
BM Solutions is the intermediary-only lending arm of Birmingham Midshires, which itself is a division of Lloyds Banking Group. While Birmingham Midshires once offered direct-to-consumer mortgages, it now operates exclusively through brokers under the BM Solutions brand.
### History and Reputation
Birmingham Midshires has been a trusted name in UK banking for over 150 years. As part of Lloyds Banking Group, BM Solutions benefits from the financial stability and infrastructure of one of the UK’s largest banking institutions. It has built a strong reputation in the mortgage market, particularly for buy-to-let lending.
BM Solutions does not deal directly with the public. All applications must go through a registered mortgage broker, which ensures that borrowers receive professional advice tailored to their circumstances.
### Services Offered
BM Solutions specialises in:
– Buy-to-let mortgages for individuals and limited companies
– Let-to-buy mortgages
– Portfolio landlord lending
– Remortgages for existing landlords
They do not offer residential mortgages or first-time buyer products. Their focus is strictly on the buy-to-let market, which allows them to offer tailored underwriting and competitive rates for landlords.
(See our full guide to buy-to-let mortgages for a broader overview of landlord finance options.)
## Eligibility & Requirements for a BM Solutions Buy-to-Let Mortgage
Before applying, it’s essential to understand the eligibility criteria and documentation required by BM Solutions. Their underwriting criteria are designed to ensure responsible lending and long-term affordability.
### Who Can Apply?
BM Solutions buy-to-let mortgages are available to:
– UK residents aged 21 to 75 (must be under 75 at the end of the mortgage term)
– First-time landlords and experienced landlords
– Individuals and limited companies (SPVs – Special Purpose Vehicles)
– Portfolio landlords (those with four or more mortgaged buy-to-let properties)
International or non-UK residents are not currently eligible for BM Solutions mortgages.
### Income Requirements
– Minimum income of £25,000 per annum (for at least one applicant)
– Rental income must cover at least 125% to 145% of the mortgage payment, depending on the applicant’s tax status and the product type
– BM Solutions uses a rental stress test to assess affordability, typically assuming an interest rate of 5.5%
### Property Criteria
BM Solutions lends on a wide range of property types, including:
– Standard houses and flats
– New-build properties (subject to valuation)
– HMOs (Houses in Multiple Occupation) – for portfolio landlords only
– Limited company-owned properties
However, they do not lend on:
– Bedsits or studio flats under 30 sqm
– Holiday lets or Airbnb-style short-term rentals
– Properties above commercial premises (case-by-case basis)
### Required Documents
To apply, you’ll need:
– Proof of ID (passport or driving licence)
– Proof of address (utility bills, bank statements)
– Proof of income (payslips, tax returns, or SA302s)
– Existing mortgage statements (for remortgages or portfolio landlords)
– Tenancy agreements (if applicable)
– Company documents (for limited company applications)
(Read more about mortgage eligibility criteria and documentation requirements.)
## Application Process Step-by-Step
Applying for a BM Solutions buy-to-let mortgage involves several key stages. Since BM Solutions only works through brokers, your first step is to find a qualified mortgage adviser.
### Step 1: Speak to a Mortgage Broker
Your broker will assess your financial situation, property plans, and investment goals. They’ll confirm whether BM Solutions is a suitable lender for your needs.
### Step 2: Decision in Principle (DIP)
Your broker will submit a Decision in Principle (DIP) to BM Solutions. This is a soft credit check and provides an indication of whether you’re likely to be approved.
### Step 3: Full Mortgage Application
Once your DIP is approved, your broker will submit a full mortgage application. This includes uploading all required documents and property details.
### Step 4: Valuation and Underwriting
BM Solutions will arrange a property valuation to confirm the rental income and market value. Their underwriters will review your documents and assess affordability.
### Step 5: Mortgage Offer
If everything is satisfactory, 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 and coordinate with BM Solutions to complete the mortgage. Funds are released on the agreed date.
### Timeline
– DIP: Same day
– Full application to offer: 7–14 working days (subject to valuation and documentation)
– Completion: 4–8 weeks total
## Rates & Fees: What Does a BM Solutions Mortgage Cost?
Understanding the costs involved is crucial when comparing buy-to-let mortgages. BM Solutions offers competitive interest rates, but fees and stress testing can affect affordability.
### Interest Rates
BM Solutions offers:
– Fixed-rate mortgages (2, 3, and 5-year terms)
– Tracker mortgages (typically 2-year terms, linked to the Bank of England base rate)
Rates vary depending on:
– Loan-to-value (LTV) – lower LTVs get better rates
– Product type (individual vs limited company)
– Fixed-term length
As of early 2025, typical rates range from 4.50% to 6.25%, depending on the above factors.
### Fees
– Product Fees: Typically £999 to £1,999 (can be added to the loan)
– Valuation Fees: Free on many products, but may apply for higher-value properties
– Legal Fees: Paid separately via your solicitor
– Early Repayment Charges (ERCs): Apply during fixed or tracker periods, usually 1%–5%
### Overall Costs
BM Solutions offers competitive total cost of borrowing, especially for landlords with strong credit and lower LTVs. However, always compare the Annual Percentage Rate of Charge (APRC) when evaluating offers.
## 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 and efficient application process via brokers
– Backed by Lloyds Banking Group – financial stability
– Free valuations available on many products
### Cons
– Only available through mortgage brokers – no direct applications
– Limited to UK residents – not suitable for overseas investors
– Strict rental stress testing can limit borrowing
– No support for holiday lets or Airbnb properties
## Alternatives & Competitors
BM Solutions is a strong choice, but it’s wise to compare with other lenders.
### Key Competitors
– The Mortgage Works (TMW): Offers flexible criteria and supports holiday lets
– Paragon Bank: Specialist in portfolio and HMO lending
– Precise Mortgages: Good for complex cases and limited company structures
– Aldermore: Supports first-time landlords and unusual properties
– NatWest and Barclays: Offer buy-to-let mortgages with competitive rates for standard properties
Each lender has its own strengths. Your broker can help you compare products based on your circumstances.
(See our comparison of top UK buy-to-let mortgage lenders.)
## FAQs: BM Solutions Buy-to-Let Mortgages
### 1. Can I apply for a BM Solutions mortgage directly?
No. BM Solutions only accepts applications via registered mortgage brokers. This ensures you receive tailored advice and meet the lender’s criteria.
### 2. Is BM Solutions the same as Birmingham Midshires?
Yes. BM Solutions is the intermediary brand of Birmingham Midshires, which is part of Lloyds Banking Group. While Birmingham Midshires no longer offers direct mortgages, BM Solutions continues to serve the buy-to-let market via brokers.
### 3. What is the minimum deposit for a BM Solutions buy-to-let mortgage?
The minimum deposit is typically 25% of the property value, meaning a maximum loan-to-value (LTV) of 75%. Some products may require lower LTVs for better rates.
### 4. Can I use BM Solutions for a limited company buy-to-let?
Yes. BM Solutions offers buy-to-let mortgages for Special Purpose Vehicles (SPVs) registered in the UK. Your company must be set up with the correct SIC codes for property letting.
### 5. Are BM Solutions mortgages available to first-time landlords?
Yes. BM Solutions accepts first-time landlords, provided you meet the income and deposit requirements. However, lending options may be more limited than for experienced landlords.
### 6. What is the rental stress test?
BM Solutions uses a rental stress test to ensure the property’s rental income covers the mortgage payments. The rental income must usually be 125% to 145% of the mortgage payment, assuming a notional interest rate (e.g., 5.5%).
### 7. How long does it take to get a mortgage offer?
Once your full application is submitted, it typically takes 7–14 working days to receive a mortgage offer, depending on valuation and documentation.
### 8. Can I remortgage my existing buy-to-let with BM Solutions?
Yes. BM Solutions offers remortgage products,
