## 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. As the specialist buy-to-let arm of Birmingham Midshires, BM Solutions offers a range of competitive products tailored for landlords. Whether you’re a first-time investor or an experienced portfolio landlord, understanding how BM Solutions operates can help you make informed decisions.
In this comprehensive guide, we’ll explore everything you need to know about BM Solutions buy-to-let mortgages, from eligibility criteria and application steps to interest rates and documentation. With a strong reputation in the UK mortgage market, Birmingham Midshires continues to be a go-to choice for thousands of landlords. Let’s dive into the details and help you determine whether a BM Solutions buy-to-let mortgage is right for your property investment plans.
## Overview: Who Are BM Solutions and Birmingham Midshires?
BM Solutions is the buy-to-let mortgage brand of Birmingham Midshires, which itself is a division of Bank of Scotland, part of Lloyds Banking Group. While Birmingham Midshires no longer offers residential mortgages to new customers, it remains a significant player in the buy-to-let sector through BM Solutions.
### A Brief History
Birmingham Midshires was originally formed in 1986 through the merger of several building societies. It became part of Halifax in 1999, which later merged with Bank of Scotland. Today, Birmingham Midshires operates under the Lloyds Banking Group umbrella, with BM Solutions as its dedicated buy-to-let lending brand.
### Services Offered
BM Solutions provides a wide range of buy-to-let mortgage products, including:
– Fixed-rate and tracker mortgages
– Purchase and remortgage options
– Let-to-buy mortgages
– Portfolio landlord support
– Limited company buy-to-let options
BM Solutions does not deal directly with the public. Instead, all applications must go through an authorised mortgage broker. This ensures that borrowers receive tailored advice and meet the lender’s requirements.
(See our full guide to buy-to-let mortgages)
## 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 is known for its clear lending policies, but like all lenders, it has specific rules that borrowers must meet.
### Who Can Apply?
BM Solutions accepts applications from:
– UK residents aged 21 to 80 (must be under 80 at the end of the mortgage term)
– First-time landlords and experienced landlords
– Portfolio landlords (up to 3 properties with BM Solutions)
– Individuals and limited companies (via SPVs – Special Purpose Vehicles)
International borrowers and expats are generally not eligible unless they meet specific criteria and work with a specialist broker.
### Property Criteria
Eligible properties must meet the following standards:
– Located in England, Wales, or mainland Scotland
– Minimum property value of £50,000
– Standard construction (non-standard properties assessed case-by-case)
– Maximum of 4 bedrooms for HMOs (Houses in Multiple Occupation)
New-build flats and ex-local authority properties are considered but may be subject to stricter lending criteria.
### Income Requirements
– Minimum earned income of £25,000 per annum (excluding rental income)
– Rental income must meet a minimum Interest Coverage Ratio (ICR), typically 125% at a notional rate of 5.5% for basic-rate taxpayers
### Required Documents
Applicants will need to provide:
– Proof of ID (passport or driving licence)
– Proof of address (utility bill or bank statement)
– Proof of income (payslips, SA302s, or tax returns)
– Existing mortgage statements (if applicable)
– Tenancy agreements for existing rental properties
(Read more about mortgage eligibility criteria)
## Application Process Step-by-Step
Applying for a BM Solutions buy-to-let mortgage involves several stages. Since BM Solutions only accepts applications through intermediaries, working with a qualified mortgage broker is essential.
### Step 1: Speak to a Mortgage Broker
Your first step is to consult a mortgage broker who is authorised to submit applications to BM Solutions. They will assess your financial situation, property plans, and advise on suitable products.
### Step 2: Get a Decision in Principle (DIP)
The broker will submit a Decision in Principle (DIP) to BM Solutions. This is a soft credit check and gives an indication of whether you’re likely to be approved.
### Step 3: Submit Full Application
Once the DIP is approved and you’re ready to proceed, your broker will submit a full mortgage application. This includes all supporting documents and property details.
### Step 4: Valuation and Underwriting
BM Solutions will instruct a property valuation and review your documents. This process typically takes 1–2 weeks, depending on the complexity of the case.
### Step 5: Mortgage Offer
If everything checks out, BM Solutions will issue a formal mortgage offer. This is usually valid for 3–6 months.
### Step 6: Completion
Your solicitor will handle the legal work, and once all conditions are met, the mortgage completes. Funds are released to purchase or remortgage the property.
### Timeline
The average BM Solutions application takes 3–6 weeks from DIP to completion, though this can vary depending on valuation times and legal work.
## Rates & Fees
Understanding the costs involved in a BM Solutions buy-to-let mortgage is vital for budgeting and profitability. BM Solutions is known for competitive interest rates, but fees and other charges can impact your overall return.
### Interest Rates
BM Solutions offers:
– Fixed-rate mortgages (typically 2, 3, or 5 years)
– Tracker-rate mortgages (linked to Bank of England base rate)
As of early 2025, typical buy-to-let rates range from 4.50% to 6.00%, depending on the loan-to-value (LTV), product type, and borrower profile.
### Product Fees
Most BM Solutions products come with:
– Product fees: Usually £995–£1,995 (can be added to the loan)
– Valuation fees: Often free for standard properties
– Legal fees: Vary depending on the solicitor, but BM Solutions may offer free legals on remortgages
### Early Repayment Charges (ERCs)
Fixed-rate products typically include ERCs if you repay early:
– 5-year fixed: 5% in year 1, reducing annually
– 2-year fixed: 2% in year 1, 1% in year 2
### Other Costs
– Broker fees: Charged by your adviser, often £300–£1,000
– Arrangement fees: Included in the product fee
– Landlord insurance: Required as a condition of the mortgage
Always compare the total cost of borrowing, not just the interest rate.
## Pros & Cons
Like any lender, BM Solutions has strengths and limitations. Here’s a summary to help you weigh your options.
### Pros
– Competitive interest rates
– Strong reputation and financial backing (part of Lloyds Banking Group)
– Fast processing times with experienced underwriters
– Products for first-time and portfolio landlords
– Limited company buy-to-let options available
### Cons
– Only accessible via mortgage brokers
– Strict income and property criteria
– Limited flexibility for international or expat borrowers
– No direct customer service for new applications
BM Solutions is best suited for UK-based landlords seeking a reliable, mainstream lender with competitive pricing.
## Alternatives & Competitors
While BM Solutions is a leading buy-to-let lender, it’s important to compare other options to find the best fit for your circumstances.
### Top Alternatives
– **The Mortgage Works (TMW)** – Part of Nationwide, known for flexible criteria and portfolio landlord support
– **Paragon Bank** – Specialist in complex buy-to-let, including HMOs and multi-unit blocks
– **Aldermore** – Offers products for limited companies and landlords with complex income
– **Skipton Building Society** – Competitive rates and flexible underwriting
– **Accord Mortgages** – Strong intermediary-only lender with good service levels
Each lender has its own criteria, so working with a broker is essential to find the best match.
(See our comparison of top 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 first-time landlords as long as you meet their income and credit criteria. You’ll need a minimum annual income of £25,000 and a strong credit history. While experience isn’t required, your application will be assessed carefully, especially if you’re buying a non-standard property or using a limited company.
### 2. Does BM Solutions offer mortgages to limited companies?
Yes, BM Solutions provides buy-to-let mortgages to Special Purpose Vehicles (SPVs) registered as limited companies. The company must be set up with appropriate SIC codes (e.g. 68209 – Other letting and operating of own or leased real estate). Directors and shareholders must provide personal guarantees, and the application process is similar to individual applications but may require additional documentation.
### 3. What is the maximum loan-to-value (LTV) with BM Solutions?
BM Solutions typically offers up to 75% LTV on buy-to-let mortgages. This means you’ll need at least a 25% deposit. In some cases, lower LTVs may qualify for better rates. For limited companies or portfolio landlords, the maximum LTV may be lower depending on the overall risk profile.
### 4. Can I remortgage with BM Solutions?
Yes, BM Solutions offers competitive remortgage products, including options with free legals or cashback. Remortgaging can help you secure a better rate, release equity, or switch from a personal to a limited company structure (though this may require a legal transfer of ownership).
### 5. Are BM Solutions mortgages portable?
No, BM Solutions buy-to-let mortgages are not portable. If you sell your property and wish to buy another,
