At Oakstead Finance, we work with BM Solutions regularly and have a practical understanding of how the lender approaches applications. The criteria, income treatment and underwriting approach can differ meaningfully from what the headline product information suggests, and knowing that detail in advance matters.
What does the BM Solutions mortgage broker guide cover?
BM Solutions is an intermediary-only buy-to-let lender offering mortgages to individual landlords and eligible limited companies. Applications must therefore be submitted through a mortgage broker rather than directly by the borrower.
- ✪ Purchases, remortgages, product transfers and further advances are available subject to product and eligibility rules.
- ✪ Applications may be made personally or through an acceptable special-purpose limited company.
- ✪ Standard buy-to-let property and tenancy restrictions apply.
Oakstead’s explanation of what borrowers should know about buy-to-let mortgages provides useful background on rental calculations, landlord costs and investment borrowing.
How much can be borrowed through BM Solutions?
The maximum loan is determined by both the property value and the rent-supported affordability figure. BM Solutions publishes a minimum new loan of £25,001 and a minimum further advance of £5,000.
- ✪ Up to 75% loan-to-value may be available where the loan does not exceed £1 million.
- ✪ Loans above £1 million and up to £2 million are generally limited to 65% loan-to-value.
- ✪ The rental calculation can produce a lower maximum than the loan-to-value limit.
How does BM Solutions calculate affordability?
BM Solutions normally assesses affordability through an interest coverage ratio rather than applying a straightforward multiple to salary. The required coverage depends on the ownership structure and, for personal applications, the applicant’s tax position.
- ✪ Personal applications may be assessed at 125% or 145% rental coverage.
- ✪ BM Solutions uses published income thresholds when deciding which personal rental coverage requirement applies.
- ✪ Limited-company applications are generally assessed at 125% rental coverage, subject to current stress-rate rules.
The calculation may change with the selected product term and rate. Oakstead’s explanation of why an online affordability figure is not a final lending decision covers the wider factors involved.
How does BM Solutions treat employment and other income?
Personal income remains relevant even though rent supports the mortgage, particularly when BM Solutions establishes tax status, minimum income or overall plausibility. The evidence required depends on how the income is received.
- ✪ Regular employment income is normally evidenced through payslips and corresponding bank statements.
- ✪ Monthly variable income may require the latest three monthly payslips; weekly pay may require six weekly payslips.
- ✪ Less frequent bonus or commission may require a longer record, potentially covering two years.
- ✪ Company directors may need tax calculations, tax-year overviews and finalised accounts.
Oakstead Finance explains how to obtain SA302s and tax-year overviews where these documents are required.
How are portfolio landlords assessed?
Portfolio landlords face an additional assessment of their background properties rather than a review of the new property alone. BM Solutions applies published limits to the number of mortgaged properties and the wider portfolio’s leverage and rental performance.
- ✪ The portfolio is generally limited to ten mortgaged buy-to-let properties at completion.
- ✪ Aggregate portfolio loan-to-value must not normally exceed 75%.
- ✪ The background portfolio must generally provide at least 145% rental coverage using a 5.5% stress rate.
- ✪ Published criteria specify a minimum income of £30,000 for each portfolio application.
What is the BM Solutions mortgage broker guide underwriting process?
The application process is largely digital, although cases can move to manual review where the property, valuation or applicant information needs closer inspection. A satisfactory valuation and the requested supporting evidence remain necessary before an offer can be issued.
- ✪ The broker completes the rental calculation and checks the applicable criteria before submission.
- ✪ An automated valuation may be possible for an eligible property.
- ✪ Straightforward automated cases may receive an offer quickly, while manually valued or referred applications take longer.
BM Solutions at a Glance
| Criterion | Published position |
|---|---|
| Access | Intermediary only |
| Minimum new loan | £25,001 |
| Maximum LTV | 75% to £1 million |
| Personal rental cover | Normally 125% or 145% |
| Limited-company cover | Normally 125% |
| Portfolio limit | Ten mortgaged properties |
What could the affordability calculation look like?
Consider a hypothetical property worth £400,000 with expected rent of £2,000 a month, giving annual rent of £24,000. At a 5.5% stress rate and 145% rental coverage, the rent-supported loan would be approximately £300,940.
A 75% loan-to-value mortgage would be £300,000, so both calculations could support that amount in principle. If a 7.5% stress rate applied instead, the rent-supported figure would fall to approximately £220,690. This illustrates why the applicable product and stress rate must be checked before relying on the deposit alone.
How does the BM Solutions mortgage broker guide compare with alternatives?
BM Solutions can suit mainstream buy-to-let cases, but another lender may produce a different result where the portfolio size or property type falls outside its limits.
- ✪ Paragon is a specialist buy-to-let lender with a proposition designed for portfolio and professional landlords, including applications requiring more detailed portfolio underwriting.
- ✪ Barclays provides buy-to-let lending through intermediaries and directly, creating a different access model from BM Solutions’ broker-only proposition.
Neither distinction makes one lender automatically preferable. Pricing, property acceptability, rental stress, portfolio exposure and total transaction costs all need to be considered together.
What You Need to Know
BM Solutions mortgage broker guide criteria combine rental affordability with property, borrower and portfolio checks.
- ✪ BM Solutions is available through mortgage intermediaries.
- ✪ The rental calculation may restrict borrowing before the maximum LTV does.
- ✪ Portfolio landlords face additional aggregate LTV and rental-cover tests.
- ✪ Criteria, products and processing times can change and should be confirmed before submission.
Frequently Asked Questions
Can a landlord apply to BM Solutions directly?
No. BM Solutions is an intermediary-only lender, so an application must be arranged and submitted through a mortgage broker.
What is the minimum BM Solutions mortgage amount?
The published minimum for a new mortgage is £25,001. A further advance is subject to a lower published minimum of £5,000.
What is the maximum BM Solutions loan-to-value?
BM Solutions may lend up to 75% LTV on loans not exceeding £1 million. A maximum of 65% LTV generally applies between £1 million and £2 million.
Does BM Solutions offer limited-company buy-to-let mortgages?
Yes, BM Solutions accepts eligible special-purpose limited companies. The company, directors, shareholders and property must satisfy the lender’s current criteria.
How does BM Solutions assess rental income?
BM Solutions applies an interest coverage ratio and a product-dependent stress rate. Personal applications may require 125% or 145% coverage, while eligible limited-company applications are generally assessed at 125%.
What does the BM Solutions mortgage broker guide say about portfolio landlords?
The BM Solutions mortgage broker guide indicates that the wider portfolio is assessed for aggregate LTV and rental coverage. The published limit is generally ten mortgaged buy-to-let properties at completion.
Does BM Solutions accept bonus and commission income?
Variable earnings can be considered where suitable evidence establishes a reliable record. The required period depends on whether payments are monthly, weekly or less frequent.
How quickly can BM Solutions issue a mortgage offer?
An eligible application using an automated valuation may progress quickly and can sometimes receive a same-day offer. Manual valuations, underwriting referrals and missing documents can extend the timescale.
