## BM Solutions Buy-to-Let Mortgage Guide: Everything You Need to Know in 2025
If you’re considering investing in rental property, securing a BM Solutions buy-to-let mortgage could be a smart move. BM Solutions, the buy-to-let arm of Birmingham Midshires, is one of the UK’s most established specialist lenders in the private rental sector. Known for competitive interest rates, flexible lending criteria, and broker-only access, BM Solutions is a popular choice among landlords—both new and experienced.
Whether you’re a first-time landlord or an expanding portfolio investor, understanding how BM Solutions operates, what they require, and how to apply is crucial. This comprehensive guide covers everything you need to know about BM Solutions buy-to-let mortgages in 2025, including eligibility, application steps, rates, fees, and frequently asked questions.
## Overview: Who Are BM Solutions and Birmingham Midshires?
BM Solutions is the dedicated buy-to-let mortgage brand of Birmingham Midshires, which itself is a division of the Lloyds Banking Group. While Birmingham Midshires no longer offers residential mortgages to new customers, it remains active in the mortgage market through BM Solutions, focusing exclusively on buy-to-let lending.
### A Brief History
Birmingham Midshires has been a recognised name in UK financial services since the 1980s. After becoming part of the Halifax Group in the 1990s, it later merged into Lloyds Banking Group in 2009. BM Solutions was created as a specialist arm to serve the growing demand for buy-to-let mortgages.
### Services Offered
BM Solutions offers a range of buy-to-let mortgage products, including:
– Fixed-rate and tracker mortgages
– Purchase and remortgage options
– Let-to-buy products
– Portfolio landlord support
– Limited company buy-to-let mortgages (via intermediaries)
All BM Solutions products are available exclusively through mortgage brokers, not directly to the public. This ensures borrowers receive tailored advice and guidance throughout the process.
(See our full guide to buy-to-let mortgages for more lender comparisons.)
## Eligibility & Requirements
Before applying for a BM Solutions buy-to-let mortgage, it’s essential to understand the eligibility criteria and documentation required. BM Solutions has specific lending policies that cater to both individual and portfolio landlords.
### Who Can Apply?
BM Solutions typically considers applications from:
– UK residents aged 21 to 80 (must be no older than 80 at the end of the mortgage term)
– Employed, self-employed, and retired applicants
– First-time landlords (with some restrictions)
– Portfolio landlords (owning four or more mortgaged buy-to-let properties)
Note: BM Solutions does not currently accept applications from non-UK residents or expats.
### Income Requirements
– Minimum earned income: £25,000 per annum (excluding rental income)
– Joint applications: At least one applicant must meet the £25,000 threshold
– No upper income limit, but affordability is assessed based on rental income
### Property Criteria
– Minimum property value: £50,000
– Maximum loan-to-value (LTV): Up to 75%
– Property must be in the UK (excluding Northern Ireland)
– Acceptable property types: Standard construction houses and flats, HMOs (up to 5 bedrooms), new builds (with restrictions)
### Required Documents
Applicants will typically need to provide:
– Proof of income (payslips, SA302s, tax returns)
– Proof of deposit or equity
– Valid photo ID and proof of address
– Tenancy agreements (for remortgages)
– Portfolio details (if applicable)
– Mortgage statements (for existing properties)
(Read more about mortgage eligibility criteria.)
## Application Process Step-by-Step
Applying for a BM Solutions buy-to-let mortgage involves several stages, all facilitated through a mortgage broker. Here’s a step-by-step breakdown of what to expect.
### Step 1: Speak to a Mortgage Broker
Since BM Solutions is a broker-only lender, your first step is to consult a qualified mortgage adviser. They’ll assess your financial situation, property plans, and recommend suitable BM Solutions products.
### Step 2: Obtain a Decision in Principle (DIP)
Your broker will submit a DIP application to BM Solutions. This involves a soft credit check and basic affordability assessment. If approved, it shows you’re eligible in principle for a mortgage.
### 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 uploading all supporting documents and property details.
### Step 4: Valuation and Underwriting
BM Solutions will instruct a property valuation and conduct a full underwriting review. This usually takes 5–10 working days, depending on complexity.
### Step 5: Mortgage Offer
If everything is satisfactory, BM Solutions will issue a formal mortgage offer. This is valid for 6 months (for purchases) or 3 months (for remortgages).
### Step 6: Completion
Your solicitor will handle the legal work, and once completed, the mortgage funds are released. You’ll then begin your mortgage term under the agreed rate and terms.
## Rates & Fees
Understanding the cost of a BM Solutions buy-to-let mortgage is crucial for budgeting and long-term profitability. Rates and fees can vary based on the product, loan size, and LTV.
### Interest Rates
As of early 2025, BM Solutions offers:
– 2-year fixed rates from 4.89% (up to 60% LTV)
– 5-year fixed rates from 5.19% (up to 75% LTV)
– Tracker rates from Bank of England Base Rate + 2.99%
Rates are subject to change and may vary by broker access or borrower profile.
### Product Fees
– Typical arrangement fees: £995 to £1,995
– Some products offer fee-free options with slightly higher interest rates
– Fees can often be added to the loan or paid upfront
### Other Costs
– Valuation fees: Often free for standard properties, but can range from £200–£600+ for larger or unusual properties
– Legal fees: Usually paid by the borrower, unless a free legal package is included
– Early repayment charges (ERCs): Apply during the fixed or tracker period (typically 1–5%)
Always review the Key Facts Illustration (KFI) provided by your broker for a full breakdown of costs.
## Pros & Cons
### Advantages of BM Solutions Buy-to-Let Mortgages
– Competitive fixed and tracker rates
– Strong support for portfolio landlords
– Flexible criteria for property types
– Efficient application process via brokers
– Backed by Lloyds Banking Group
### Potential Drawbacks
– Only available through mortgage brokers
– No direct access for customers
– No expat or international lending
– Limited to properties in England, Wales, and mainland Scotland
– Strict income and property criteria
## Alternatives & Competitors
While BM Solutions is a leading name in buy-to-let lending, it’s worth comparing other lenders to find the best fit for your needs.
### Key Competitors
– The Mortgage Works (TMW): Offers expat and limited company buy-to-let options
– Paragon Bank: Excellent for portfolio landlords and HMOs
– Aldermore: Flexible underwriting for complex cases
– NatWest: Good for standard buy-to-let and remortgages
– Santander: Offers cashback and free valuation deals
Each lender has its own strengths, so working with a whole-of-market broker can help you compare rates, criteria, and fees across the board.
## FAQs
### 1. Can I get a BM Solutions buy-to-let mortgage as a first-time landlord?
Yes, BM Solutions does accept first-time landlords, provided you meet their income and credit criteria. However, some products may be restricted to experienced landlords. A broker can help identify suitable options.
### 2. Does BM Solutions offer limited company buy-to-let mortgages?
No, BM Solutions currently only offers buy-to-let mortgages to individuals, not limited companies. If you’re seeking a limited company mortgage, consider lenders like Paragon or Precise Mortgages.
### 3. Can I remortgage with BM Solutions?
Yes, BM Solutions offers competitive remortgage products, including options with free valuations and legal packages. You can remortgage from another lender or switch products within BM Solutions at the end of your fixed term.
### 4. What is the maximum loan-to-value (LTV) with BM Solutions?
BM Solutions offers up to 75% LTV on buy-to-let mortgages. This means you’ll need at least a 25% deposit or equity in the property.
### 5. How long does the application process take?
From DIP to completion, the process typically takes 4–6 weeks, depending on the complexity of your case and solicitor efficiency. Straightforward cases may complete faster.
### 6. Can I live in the property with a BM Solutions buy-to-let mortgage?
No. BM Solutions products are strictly for rental purposes. Living in the property would breach the mortgage terms and could trigger repayment demands.
### 7. What credit score do I need?
BM Solutions does not publish a minimum credit score, but they expect a clean credit history with no recent defaults, CCJs, or bankruptcies. Your broker can assess your credit profile before applying.
### 8. Are there early repayment charges?
Yes, most BM Solutions fixed-rate and tracker mortgages include ERCs during the initial term. These are usually tiered (e.g., 3% in year one, 2% in year two).
### 9. Can I let to family members?
BM Solutions does not allow letting to immediate family members under standard buy-to-let terms. This would be considered a regulated mortgage, which BM Solutions does not offer.
### 10. Is BM Solutions a good lender for portfolio landlords?
Yes. BM Solutions has strong systems for managing portfolio applications and supports landlords with four or more properties. You’ll need to submit a full property portfolio schedule.
### 11. What happens
