Information provided on these pages are for guidance purposes only and does not constitute any mortgage advice.
Birmingham Midshires Mortgage products are branded BM Solution Mortgages. To obtain a BM Solutions mortgage there are some key lending criteria that must be met.
It is also important to note that BM Solutions mortgages are only available to new Buy to Let and Let to Buy customers and that these mortgages are only available via independent financial advisers and mortgage advisers (they are not available directly to customers). BM Mortgage Advisers have a panel of dedicated BM Solution mortgage advisers.
BM Solution Mortgages are Buy to Let mortgages and such such are solely for investment purposes -the are not for owner occupation. Application assessment is carried out under several key areas,
As a Buy to Let BM Solutions mortgage applicant you must meet some personal criteria
- You must be employed or self employed. If you are self employed the minimum self employment period is 2 years.
- Whilst there is no minimum income requirement, you must be able to demonstrate that you have sufficient income to cover your lifestyle costs and any credit commitments.
- You must have a good credit record.
- You must meet the BM Solutions min and maximum age criteria (min age is 21 and maximum age is 75 years at application)
- For buy to let purchase applications - you must provide a minimum of a 25% deposit (minimum Loan to Value LTV is 75%)
Property Criteria - whilst property types are covered under a separate section, the rental income from the property must meet BM Solutions rental income 'stress test'.
- This stress test depends on your income level (rate of tax that you pay) and also the type of property (higher stress tests apply for HMO properties).
- The stress test is essentially a buy to let affordability calculation designed to ensure you are able to manage the buy to let mortgage payments based on a number of potential current and future scenarios.
BM Solutions accept clients with a good credit record. The application process involves credit checking with a number of credit referencing agencies.
A good credit record involves,
- None or very very limited missed credit card, loan or utility payments in the last 24 months
- Whilst borrowing is generally fine, a very high usage of 'credit utilisation' can affect lending decisions
You can check your credit score with the following credit referencing agencies,
Portfolio landlords are landlords generally with 4 or more investment or BTL properties. BM Solution mortgages can potentially accept applications from portfolio landlords subject to assessment.
It is important to note that there are limits to the maximum loan available to customers, both individually on properties and across multiple property owners.
BM solutions mortgages can consider application that are from 'non' homeowners. In these circumstances a specialist mortgage assessment is carried out.
BM solutions mortgages will accept mortgage applications from first time landlords.
This lending guide highlights just some of the key aspects of BM Solution mortgages lending criteria. BM Mortgage advisers specialist team can provide advice on all aspects of BM Solutions mortgages and have a thorough understanding of all lending criteria.
Make a no obligation mortgage enquiry with our dedicated team of BM Solutions mortgage advisers.