## BM Solutions Buy-to-Let Mortgage Guide: Everything You Need to Know in 2025
If you’re considering investing in property, a BM Solutions buy-to-let mortgage could be the key to unlocking your next opportunity. As the specialist 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 BM Solutions operates—and how to qualify—can help you make informed decisions.
In this comprehensive guide, we’ll explore the ins and outs of BM Solutions buy-to-let mortgages, including eligibility criteria, the application process, interest rates, and essential documents. We’ll also compare BM Solutions with other lenders and answer common FAQs to help you navigate the 2025 mortgage landscape with confidence.
## Overview: Who Are BM Solutions and Birmingham Midshires?
BM Solutions is the buy-to-let mortgage division of Birmingham Midshires, a brand under Lloyds Banking Group. While Birmingham Midshires no longer offers residential mortgages to new customers, it remains a prominent name in the UK mortgage market through BM Solutions, which exclusively serves intermediaries—meaning you can only access their products via a mortgage broker.
### A Brief History
Birmingham Midshires was formed in 1986 through the merger of Birmingham & Bridgwater Building Society and the Midshires Building Society. It became part of Halifax in 1999, which later merged with Lloyds TSB to form Lloyds Banking Group in 2009. BM Solutions was launched as a specialist lending brand focused on the growing buy-to-let sector.
### What BM Solutions Offers
BM Solutions provides a wide range of buy-to-let mortgage products, including:
– Fixed-rate and tracker mortgages
– Products for individual landlords and limited companies
– Portfolio landlord solutions
– Let-to-buy options
– Remortgage deals
As of 2025, BM Solutions remains one of the most popular choices for UK landlords due to its competitive rates, streamlined application process, and strong broker support.
## 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 guidelines that borrowers must meet to qualify.
### Who Can Apply?
BM Solutions caters to:
– UK residents aged 21 to 75 (must be under 75 at the end of the mortgage term)
– First-time landlords and experienced investors
– Portfolio landlords (those with four or more mortgaged buy-to-let properties)
– Limited companies (via SPV structures)
Note: BM Solutions does not currently offer mortgages to non-UK residents or expatriates.
### 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 minimum income requirement for portfolio landlords, but affordability and rental cover are assessed stringently
### Rental Income & Stress Testing
– Rental income must meet a minimum Interest Coverage Ratio (ICR), typically 125% at a stress rate of 5.5% for basic-rate taxpayers and 145% for higher-rate taxpayers
– For limited companies, the ICR is usually 125% regardless of tax band
### Acceptable Property Types
BM Solutions will consider:
– Standard residential houses and flats
– HMOs (Houses in Multiple Occupation) up to 5 bedrooms
– New-build properties (subject to valuation)
– Leasehold flats (minimum 70 years remaining)
They typically do not lend on:
– Studio flats under 30 sqm
– Properties above commercial premises
– Holiday lets or Airbnb-style short lets
– Non-standard construction (e.g., timber frame, concrete)
### Required Documents
To apply, you’ll need:
– Proof of ID and address
– Proof of income (payslips, SA302s, tax year overviews)
– Bank statements (usually last 3 months)
– Existing mortgage statements (if applicable)
– Tenancy agreements (for portfolio landlords)
– Portfolio spreadsheet (if you own four or more properties)
(See our full guide to mortgage eligibility criteria)
## Application Process Step-by-Step
BM Solutions only operates through intermediaries, so you’ll need to work with a mortgage broker to apply. Here’s how the process typically unfolds:
### Step 1: Broker Consultation
– Your mortgage broker will assess your financial situation, goals, and property details
– They’ll recommend suitable BM Solutions products and check your eligibility
### Step 2: Decision in Principle (DIP)
– Your broker submits a DIP to BM Solutions
– This involves a soft credit check and basic affordability assessment
– If approved, you’ll receive a DIP certificate valid for 30 days
### Step 3: Full Mortgage Application
– Submit full details including documents, property information, and legal details
– BM Solutions conducts a full credit check and underwrites the application
### Step 4: Valuation
– A property valuation is arranged by BM Solutions (fees may apply)
– The lender assesses the property’s value and rental potential
### Step 5: Offer & Legal Work
– If approved, BM Solutions issues a formal mortgage offer
– Your solicitor or conveyancer handles the legal side, including searches and contracts
### Step 6: Completion
– Once legal work is complete, funds are released
– You become the legal owner (or remortgage completes), and your mortgage begins
### Timeline
– DIP: 1–2 working days
– Full application to offer: 7–14 working days (subject to valuation)
– Completion: 4–8 weeks depending on legal work
## Rates & Fees
BM Solutions offers competitive interest rates and transparent fee structures. However, it’s important to understand the full cost of borrowing.
### Interest Rates
As of early 2025, BM Solutions offers:
– 2-year fixed rates from 4.89% (subject to LTV and product type)
– 5-year fixed rates from 4.59%
– Tracker rates from 5.25% (linked to Bank of England base rate)
Rates vary depending on:
– Loan-to-value (LTV): Lower LTVs typically get better rates
– Property type: HMOs and new builds may attract higher rates
– Borrower type: Limited company vs. individual
(See our full guide to current buy-to-let mortgage rates)
### Fees
Common fees include:
– Product fee: £0 to £1,995 (can be added to the loan)
– Valuation fee: Varies by property value (often free on select products)
– Broker fee: Set by your broker, not BM Solutions
– Legal fees: Paid to your solicitor; some remortgage products include free legals
### Early Repayment Charges (ERCs)
Most fixed-rate products have ERCs during the initial term, typically:
– 2-year fix: 2% in year 1, 1% in year 2
– 5-year fix: 5% in year 1, reducing annually
Always check the Key Facts Illustration (KFI) for full details.
## Pros & Cons
### Pros
– Competitive fixed and tracker rates
– Strong support for portfolio landlords
– Fast and efficient application process
– Access to a wide range of products via brokers
– Backed by Lloyds Banking Group
### Cons
– Only available through brokers (no direct applications)
– Not available to non-UK residents
– Limited support for non-standard properties
– Strict rental stress testing can limit borrowing
## Alternatives & Competitors
While BM Solutions is a market leader, it’s worth comparing with other buy-to-let lenders to find the best fit for your needs.
### Key Competitors
– **The Mortgage Works (TMW)**: Offers flexible criteria and supports first-time landlords
– **Paragon Bank**: Strong for portfolio landlords and HMOs
– **Precise Mortgages**: Good for limited company and specialist buy-to-let
– **Kent Reliance**: Offers bespoke underwriting for complex cases
– **Aldermore**: Known for flexible income assessment and portfolio support
Each lender has unique criteria, so working with a whole-of-market broker is essential to find the most suitable product.
(See our full comparison of buy-to-let mortgage lenders)
## FAQs
### 1. Can I get a BM Solutions buy-to-let mortgage as a first-time landlord?
Yes, BM Solutions accepts applications from first-time landlords, provided you meet the income and eligibility criteria. However, they may apply stricter affordability checks compared to experienced landlords. A strong credit history and stable income are essential.
### 2. Does BM Solutions lend to limited companies?
Yes, BM Solutions offers buy-to-let mortgages to Special Purpose Vehicles (SPVs) registered as limited companies. The company must have appropriate SIC codes (e.g., 68100, 68209). Directors must provide personal guarantees, and rental stress testing still applies.
### 3. What is the maximum loan-to-value (LTV) BM Solutions offers?
BM Solutions typically lends up to 75% LTV for buy-to-let properties. Lower LTVs (e.g., 60%) may attract better interest rates. For HMOs and limited company applications, the maximum LTV may be lower.
### 4. How many properties can I have with BM Solutions?
There’s no strict cap on the number of properties, but BM Solutions assesses portfolio landlords more stringently. If you own four or more mortgaged buy-to-let properties, you’ll need to provide a full portfolio breakdown and meet additional criteria.
### 5. Can I remortgage with BM Solutions?
Yes, BM Solutions offers remortgage products, including options with free valuations and legal services. These are available to both individual and limited company landlords, subject to eligibility.
### 6. What credit score do I need for a BM Solutions mortgage?
BM Solutions does not publish a minimum credit score, but a good to excellent credit history is typically