## BM Solutions Buy-to-Let Mortgage Guide: 2025 Edition
If you’re considering investing in rental property, a BM Solutions buy-to-let mortgage could be a smart financing option. As the specialist buy-to-let arm of Birmingham Midshires, BM Solutions offers tailored mortgage products designed specifically for landlords. Whether you’re a first-time investor or an experienced portfolio landlord, understanding how BM Solutions works—and how to apply—can help you make informed decisions and maximise your returns.
In this comprehensive guide, we’ll explore everything you need to know about BM Solutions buy-to-let mortgages, including eligibility criteria, application steps, interest rates, required documents, and how brokers can help. We’ll also compare BM Solutions with other lenders and answer frequently asked questions. This guide is designed for both UK residents and international investors planning to enter the UK rental property market in 2025.
## Overview of BM Solutions and Birmingham Midshires
BM Solutions is a trading name of Birmingham Midshires, which is itself a division of Lloyds Banking Group—one of the UK’s largest financial services organisations. While Birmingham Midshires once offered a broader range of mortgage products, it now focuses exclusively on buy-to-let lending through BM Solutions.
BM Solutions does not deal directly with the public. Instead, all applications must go through an authorised mortgage broker. This intermediary model allows them to maintain a streamlined, specialist service for landlords while ensuring applicants receive tailored advice.
Key features of BM Solutions:
– Specialises solely in buy-to-let mortgages
– Offers products for individual landlords and limited companies
– Provides options for both single properties and portfolio landlords
– Competitive interest rates and flexible lending criteria
– Exclusively available through mortgage brokers
BM Solutions is particularly popular among landlords due to its consistent lending criteria, quick processing times, and strong support for portfolio lending. It’s also known for its robust online portal, which brokers use to manage applications efficiently.
As of 2025, BM Solutions continues to be one of the most active lenders in the UK buy-to-let market, offering a range of fixed and tracker-rate products to suit different investment strategies.
## Eligibility & Requirements for a BM Solutions Buy-to-Let Mortgage
Before applying for a BM Solutions buy-to-let mortgage, it’s essential to understand the eligibility criteria and documentation requirements. BM Solutions has clear lending rules, which help streamline the application process.
### General Eligibility Criteria
– **Applicant Age**: Minimum age is 25; maximum age at the end of the mortgage term is 75.
– **UK Residency**: Applicants must be UK residents. BM Solutions does not currently accept applications from non-residents or expats.
– **Credit History**: A clean credit history is preferred. Minor issues may be considered but serious adverse credit (e.g., CCJs, bankruptcies) is typically not accepted.
– **Income**: Minimum earned income of £25,000 per annum (excluding rental income). Joint applicants must have a combined income of at least £25,000.
– **Number of Properties**: BM Solutions supports both individual landlords and portfolio landlords (those with four or more mortgaged buy-to-let properties).
### Property Requirements
– **Property Type**: Standard residential properties in good condition. Flats, houses, and maisonettes are acceptable. New-builds are accepted with certain restrictions.
– **Location**: Properties must be in England, Wales, or mainland Scotland.
– **Minimum Value**: Generally, the property must be worth at least £60,000 (£100,000 for flats in some areas).
– **Rental Income**: The rent must cover at least 125% of the mortgage interest at a stress-tested rate (usually 5.5% for individuals, 5% for limited companies).
### Required Documents
– Proof of ID (passport or driving licence)
– Proof of address (utility bill, bank statement)
– Proof of income (payslips, SA302s for self-employed)
– Proof of deposit (bank statements)
– Existing mortgage statements (if applicable)
– Portfolio spreadsheet (for portfolio landlords)
(For more, read our full guide to mortgage eligibility criteria.)
## BM Solutions Application Process: Step-by-Step
Applying for a BM Solutions buy-to-let mortgage involves several stages, all of which must be completed through a mortgage broker. Here’s a step-by-step guide to help you navigate the process.
### Step 1: Speak to a Mortgage Broker
BM Solutions does not accept direct applications. You’ll need to work with a broker who is registered with BM Solutions. The broker will assess your circumstances and recommend suitable products.
### Step 2: Get a Decision in Principle (DIP)
The broker will submit a Decision in Principle (DIP) application to BM Solutions. This is a soft credit check and gives you an indication of how much you can borrow. It’s not a formal offer but is a useful first step.
### Step 3: Submit a Full Mortgage Application
Once your offer on a property is accepted, your broker will submit a full application. You’ll need to provide all required documents at this stage.
### Step 4: Valuation and Underwriting
BM Solutions will instruct a valuation to confirm the property’s value and rental income. Simultaneously, underwriters will assess your application and documentation.
### Step 5: Mortgage Offer
If everything checks out, BM Solutions will issue 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 funds will be released, and the purchase will complete.
### Timeline
– DIP: Same day
– Full application to offer: 5–10 working days (on average)
– Completion: 4–8 weeks, depending on legal work
(See our full guide to buy-to-let mortgages for more application tips.)
## BM Solutions Interest Rates, Fees & Costs
Understanding the cost of a BM Solutions buy-to-let mortgage is crucial for planning your investment. Rates and fees can vary depending on the product, loan size, and borrower profile.
### Interest Rates
BM Solutions offers both fixed-rate and tracker-rate mortgages:
– **Fixed Rates**: Typically available for 2, 3, or 5 years. These provide payment stability.
– **Tracker Rates**: Track the Bank of England base rate, usually with a margin added.
As of early 2025, typical BM Solutions fixed rates range from 4.5% to 6.0%, depending on the loan-to-value (LTV) ratio and product type.
### Loan-to-Value (LTV)
– Up to 75% LTV for most buy-to-let products
– Lower rates available at 60% LTV or below
### Fees
– **Product Fees**: Often £995–£1,999, depending on the mortgage product
– **Valuation Fees**: Free valuations on many products; otherwise, fees vary by property value
– **Legal Fees**: Usually paid by the borrower; some products include free legals for remortgages
– **Early Repayment Charges (ERCs)**: Apply during fixed/tracker periods—typically 1–5% of the loan
### Other Costs
– Broker fees (if applicable)
– Stamp Duty Land Tax (SDLT) for buy-to-let
– Ongoing landlord costs (insurance, maintenance, etc.)
BM Solutions is known for competitive pricing, especially for landlords with strong credit and lower LTVs.
## Pros & Cons of BM Solutions Buy-to-Let Mortgages
### Pros
– **Specialist Lender**: Focuses solely on buy-to-let, with deep expertise
– **Competitive Rates**: Especially for lower LTVs and portfolio landlords
– **Strong Broker Support**: Efficient online systems and fast processing
– **Flexible for Portfolio Landlords**: Accepts up to 10 properties per applicant
– **Limited Company Options**: Products available for SPVs (Special Purpose Vehicles)
### Cons
– **Broker-Only Access**: Cannot apply directly; must use a broker
– **No Expat Lending**: Only available to UK residents
– **Strict Rental Coverage Rules**: Stress testing can limit borrowing
– **Not Suitable for First-Time Buyers**: Must already own a residential property
BM Solutions is a top choice for experienced landlords but may not be ideal for first-time investors or those with complex income profiles.
## Alternatives & Competitors to BM Solutions
While BM Solutions is a market leader, it’s not the only option. Depending on your circumstances, other lenders may offer more suitable products.
### Top Competitors
– **The Mortgage Works (TMW)**: Part of Nationwide, strong for first-time landlords and limited companies.
– **Paragon Bank**: Excellent for portfolio landlords and HMOs.
– **Precise Mortgages**: Good for borrowers with adverse credit or complex income.
– **Aldermore**: Flexible underwriting and strong for limited company lending.
– **Kent Reliance**: Offers bespoke underwriting and high LTV options.
Each lender has different criteria, so it’s vital to compare options with a broker. For example, TMW accepts first-time landlords, while BM Solutions does not. Paragon may be better for complex portfolios or multi-unit properties.
(See our comparison of the best buy-to-let mortgage lenders in 2025.)
## Frequently Asked Questions
### 1. Can I get a BM Solutions buy-to-let mortgage as a first-time landlord?
No, BM Solutions requires applicants to already own a residential property. If you’re a first-time buyer or first-time landlord, consider lenders like TMW or Precise Mortgages.
### 2. Does BM Solutions lend to limited companies?
Yes, BM Solutions offers buy-to-let mortgages to Special Purpose Vehicles (SPVs) with standard SIC codes. You’ll need to provide company documents and personal guarantees.
### 3. What is the minimum income requirement?
Applicants must earn at least £25,000 per year, excluding rental income. This applies
