## BM Solutions Buy-to-Let Mortgage Guide: Everything You Need to Know
If you’re considering a buy-to-let mortgage, BM Solutions is one of the most prominent names in the UK market. As the buy-to-let arm of Birmingham Midshires, BM Solutions offers a range of competitive mortgage products tailored specifically for landlords. Whether you’re a first-time investor or an experienced portfolio landlord, understanding how a BM Solutions buy-to-let mortgage works can help you make informed decisions and maximise your investment returns.
In this comprehensive guide, we’ll explore everything you need to know about BM Solutions buy-to-let mortgages — from eligibility requirements and the application process to interest rates, fees, and how they compare with other lenders. We’ll also provide practical advice for both UK-based and international borrowers, ensuring you’re fully prepared for the 2025 mortgage landscape.
## Overview of BM Solutions and Birmingham Midshires
BM Solutions is the buy-to-let lending division of Birmingham Midshires, a brand under the Lloyds Banking Group. While Birmingham Midshires no longer offers residential mortgages to new customers, BM Solutions continues to serve the buy-to-let market exclusively through mortgage brokers.
### A Brief History
Birmingham Midshires has a long-standing reputation in UK financial services, dating back to the 1980s. It became part of the Halifax Group in 1999, which later merged with Lloyds TSB to form Lloyds Banking Group. BM Solutions was launched to focus on the growing demand for specialist buy-to-let lending.
### Services Offered
BM Solutions provides a range of buy-to-let mortgage products, including:
– Fixed-rate and tracker buy-to-let mortgages
– Let-to-buy mortgages
– Portfolio landlord solutions
– Limited company buy-to-let mortgages (via intermediaries)
All BM Solutions products are available exclusively through authorised mortgage brokers, meaning borrowers cannot apply directly.
BM Solutions is known for its efficient underwriting process, competitive rates, and consistent lending criteria. It remains a popular choice among landlords due to its experience, reliability, and strong backing from one of the UK’s largest banking groups.
## Eligibility & Requirements
Before applying for a BM Solutions buy-to-let mortgage, it’s essential to understand their eligibility criteria and documentation requirements. BM Solutions has clear guidelines to ensure borrowers can manage their mortgage responsibilities effectively.
### General Eligibility Criteria
– **Age**: Applicants must be between 25 and 75 years old at the time of application. The mortgage must be repaid by the borrower’s 75th birthday.
– **UK Residency**: Applicants must be UK residents. BM Solutions does not currently lend to expatriates or non-UK residents.
– **Credit History**: A good credit history is essential. Applicants with recent defaults, CCJs, or bankruptcies may not be eligible.
– **Minimum Income**: A minimum annual income of £25,000 is required (combined if joint applicants). Rental income alone is not accepted to meet this threshold.
### Property Requirements
– **Property Type**: Standard residential properties are acceptable. BM Solutions does not lend on:
– HMOs (Houses in Multiple Occupation)
– Bedsits or studio flats under 30m²
– Properties above commercial premises
– Ex-local authority flats (in some cases)
– **Location**: Properties must be in England, Wales, or mainland Scotland.
– **Tenancy**: Properties must be let on an Assured Shorthold Tenancy (AST) agreement for 6–12 months.
### Documentation Needed
– Proof of income (payslips, tax returns, SA302s)
– Proof of identity (passport or driving licence)
– Proof of address (utility bills or bank statements)
– Existing mortgage statements (if applicable)
– Portfolio details (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 stages, all handled through a mortgage broker. Here’s a step-by-step breakdown of what to expect:
### Step 1: Speak to a Mortgage Broker
BM Solutions only accepts applications via intermediaries. Your first step is to consult a qualified mortgage broker who has access to BM Solutions products. The broker will assess your circumstances and recommend suitable mortgage options.
### Step 2: Decision in Principle (DIP)
The broker will submit a Decision in Principle (DIP) application to BM Solutions. This involves a soft credit check and helps determine whether you’re likely to be accepted. It’s not a formal offer but gives you a good indication.
### Step 3: Full Mortgage Application
If the DIP is successful, your broker will submit a full mortgage application. This includes uploading all required documents and details about the property.
### Step 4: Valuation and Underwriting
BM Solutions will arrange a property valuation to ensure it meets lending criteria. At the same time, underwriters will assess your documents and affordability.
### Step 5: Mortgage Offer
If everything checks out, BM Solutions will issue a formal mortgage offer. This is valid for 6 months, giving you time to complete the purchase or remortgage.
### Step 6: Completion
Once your solicitor finalises the legal work, the mortgage funds will be released, and your buy-to-let mortgage will complete.
### Timeline
– DIP: 1–2 working days
– Full application to offer: 5–10 working days (depending on complexity)
– Completion: 4–8 weeks (typical for purchases)
## Rates & Fees
Understanding the cost of your mortgage is crucial. BM Solutions offers competitive interest rates, but fees and other charges can affect the overall value.
### Interest Rates
BM Solutions offers both fixed-rate and tracker buy-to-let mortgages. As of early 2025:
– **2-year fixed rates**: From 4.25% (subject to LTV and product type)
– **5-year fixed rates**: From 4.45%
– **Tracker rates**: From 0.75% above Bank of England base rate
Rates vary depending on:
– Loan-to-value (LTV) ratio
– Property type
– Borrower profile
– Fixed term duration
### Fees
BM Solutions typically charges:
– **Product fee**: £999 (can be added to the loan)
– **Valuation fee**: Free on some products; otherwise £200–£500 depending on property value
– **Broker fee**: Varies by broker (often £300–£1,000)
– **Legal fees**: Paid to your solicitor; not charged by BM Solutions
### Overall Cost
The Annual Percentage Rate of Charge (APRC) gives a better sense of long-term cost. For example, a 5-year fixed product might have an APRC of 6.2%, including fees and revert-to-rate after the fixed period.
(See our full guide to buy-to-let mortgage rates and fees.)
## Pros & Cons
### Pros
– **Strong reputation**: Backed by Lloyds Banking Group
– **Competitive rates**: Especially for standard buy-to-let properties
– **Efficient process**: Fast underwriting and processing
– **Broker-only access**: Ensures professional advice
– **Portfolio landlord support**: Accepts up to 10 mortgaged properties
### Cons
– **Limited property types**: No HMOs or complex cases
– **UK residents only**: No lending to expats or foreign nationals
– **Broker required**: No direct applications
– **Strict income criteria**: £25,000 minimum income rule
– **No interest-only options for limited companies**
BM Solutions is ideal for standard buy-to-let investors but may not suit those with complex borrowing needs.
## Alternatives & Competitors
While BM Solutions is a leading buy-to-let lender, it’s worth comparing with other providers:
### The Mortgage Works (TMW)
– Part of Nationwide Building Society
– Offers HMO and limited company buy-to-let
– Flexible criteria for portfolio landlords
### Paragon Bank
– Specialist in portfolio and complex buy-to-let
– Accepts HMOs, multi-unit blocks, and limited companies
– Higher rates but more flexible underwriting
### NatWest & Barclays
– High-street lenders with competitive fixed rates
– Suitable for standard buy-to-let
– May offer incentives like cashback
### Aldermore & Precise Mortgages
– Specialist lenders for adverse credit or complex income
– Manual underwriting
– Higher fees but greater flexibility
Each lender has its strengths, so it’s important to work with a broker to find the best fit for your needs.
(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 eligibility criteria. However, they may require stronger affordability evidence and may limit your borrowing amount compared to experienced landlords.
### 2. Does BM Solutions offer mortgages for limited companies?
No, BM Solutions does not currently offer buy-to-let mortgages to limited companies. All applications must be in individual names. If you’re looking for limited company buy-to-let, consider lenders like Paragon, Precise, or The Mortgage Works.
### 3. What is the minimum deposit required?
BM Solutions typically requires a minimum deposit of 25% (75% LTV). For better rates, a 40% deposit (60% LTV) is recommended. Higher LTV may be available in some cases, but with increased rates.
### 4. Can I remortgage my existing buy-to-let with BM Solutions?
Yes, BM Solutions offers remortgage products with or without capital raising. You can switch from another lender or remortgage an existing BM Solutions loan to a new deal.
### 5. How many properties can I have with BM Solutions?
BM Solutions allows up to 3 buy-to-let mortgages per applicant with them, and up to 10 mortgaged
