Skip to main content

The original online application system and still the best.

Register | Log in

Criteria

Search using keyword or phrase

Please type any search keyword or phrase

Application 

 Documentation Required

Only ID and Right to Reside Documents are required to be certified with the following information:

"Certified true copy of the original document"

The documentation must not be older than 3 months at the time of the application and the certification should also state the following information:

  • Name of the certifier
  • Signature of the certifier
  • Date of certification, which must not be older than 3 months at the time of the application

All existing mortgage holders/local authority tenants should provide either a Latest lender's or landlord's statement.

A copy of the Assured Shorthold Tenancy Agreement may be required for Additional Borrowing applications.


 Evidence

Evidence of income and deposit should be retained in all cases. The evidence must reconcile with the details declared on the application form.

In some cases, we will ask for evidence to be submitted. If we cannot reconcile the details declared with the evidence received we will decline the application because we cannot rely on the information that has been provided.

When the messages below are displayed the appropriate evidence must be submitted before the application can proceed.

Mortgage Promise and Mortgage Illustration

"Subject to: This application will be referred for manual underwriting, please submit Customer Profile Form (pdf, 138kB), proof of income & deposit"

Please submit:

  • Customer Profile Form
  • Evidence of Income
  • Evidence of Deposit

For each of the following:

Confirm Submission screen - "Evidence of deposit and income will be required for this application"

Submit Application Results screen/Additional Requirements - "Verification of income"

Submit Application Results screen/Additional Requirements - "Verification of deposit"

Please submit:

  • Evidence of Income
  • Evidence of Deposit

Where you are advised that the application is subject to a manual underwrite (a message will be displayed in the Decision Results screen and the Additional Requirements section of the Submit Application Results screens), you should submit the Customer Profile Form (pdf, 138kB) and evidence of income and deposit.

Where an application is subject to manual underwriting, you should also complete and submit the Customer Profile Form (pdf, 138kB).

Following submission of a full application, the above messages won't be visible but can be reviewed using the following process.

  • Select 'Retrieve an Application' from the One Minute Mortgage main menu
  • Key in the mortgage application number and click 'search'
  • Select the blue reference number
  • From the menu list select 'Submit Application Results'
  • On the payment card details screen click 'next'
  • Any verification required will be noted under 'Additional Requirements'

You will be notified of any verification of income, deposit or proof of property ownership when you fully submit your application. However, at any point during the application processing we may request further supporting documentation if required.


 Mortgage Account Fee

A mortgage account fee is a fee that covers the setting up, routine maintenance and closing down of the mortgage account.


 Proof of Residential Purchase – Let to Buy

All Let to Buy applications must involve a related residential purchase. We will only accept applications where customers are renting out their existing home to enable them to buy another. The following evidence is required:

  • A copy of the customer's mortgage offer on the property being purchased or
  • If no mortgage is being taken, the conveyancer must provide a letter to confirm the property is being purchased mortgage free and the purchase price

This evidence must be provided before the Let to Buy offer can be issued, and this also meets our requirements to obtain details of the customer's future residential address.


 Remortgage Service (Free Legals)

The remortgage service is available on most, but not all, of our remortgage products. Where your customer uses our remortgage service, we will pay our conveyancer’s legal fees and any registration fees.

Your customer will have to pay any fees their existing lender may charge in connection with repaying their current mortgage.

These include your customers existing lender's conveyancer's fees if the existing lender does not allow our conveyancer to act for them too. BM Solutions conveyancer's may be able to offer to do extra legal work for your customer at the same time as the remortgage (not in Northern Ireland). If your customer decides to use them, they will make a separate charge for the extra work and your customer will have to pay for it. Your customer should ask about the charge before asking the conveyancers to do any extra work for them, extra work includes:

  • Transfer of Equity
  • Purchasing an additional tranche
  • Additional TTs where a cashback is involved
  • Second Charges
  • Possessory title
  • Unregistered land
  • Leasehold properties

IMPORTANT - Northern Irish law states that solicitors appointed by the Lender are not able to provide any additional services to the customer. Therefore, should the customer/s require any additional services they should instruct another firm to complete these services on their behalf.

Your customer can choose their own conveyancer to act. Please note also that our remortgage service is not available with some of our remortgage products and your customer will have to choose their own conveyancer to act if they decide to have one of these products. This conveyancer will act for BM Solutions in the remortgage, provided they are on our panel of conveyancers, and your customer must pay the legal charges, and any search fees, registration fees or other costs, whether or not the matter goes ahead. The search insurance facility will not be available.

The remortgage service is also available for customers who are capital-raising on a mortgage-free property.

Scottish Properties - Closure of Sasine register

As part of the goal to complete the Land Register, the General Register of Sasine closed to standard securities on 1 April 2016. This change only affects remortgaging of Scottish properties that are on the old Sasine register.

As part of our commitment to make things easier BM Solutions will cover the standard costs for transferring from the Sasine register to the Land Registry within the conveyancing element of our remortgage service, wherever possible.

However, some transactions are deemed to have an additional level of complexity where we won’t be able to cover the full costs as part of the remortgage service. For these complex cases the conveyancer should discuss the case with the customer to establish the level of additional fee required, which is then payable by the customer. The Scottish Conveyancing panel has estimated it expects approximately 40% of cases to be complex.

Some examples of where the conveyancer would classify the transfer of the property tile from the Sasines Register to the Land Registry case as complex include:

  • Plans report states either an overlap or shortfall between the legal and occupational extent
  • Title is complex with split-off writs, exceptions and additions (essentially requires a full examination of title to draft the security and obtain a relevant deed plan)
  • Property is a flat or part of a tenement block and there are common parts etc, obtaining of neighbouring titles would be required
  • Property is rural and copies of neighbouring titles are required to check servitudes/access rights etc.
  • These are some high level examples considered by conveyancer panel firms as most likely to occur (but are not limited to these examples). The specific costs associated to complex cases/scenarios will vary, and panel firms will apply an hourly rate and discuss all matters with customers up front prior to commencing any further with the transaction.

Customer 

 Applicants

Minimum age: All applicants must be at least 25 years old.

The eldest applicant on the application cannot exceed age 75 at the time of the application and age 80 at the end of the term. Please note our minimum term is 5 years for mortgages and 2 years for further advances.

A maximum of 4 applicants are allowed on one application

An applicant does not need to be an owner occupier but at least one applicant must currently own a property in the UK which will need to be validated before an offer can be made.

All other applicants must either currently own a property in the UK or have previously owned a property in the UK which can be evidenced with land registry.

First Time Buyers are not eligible for Buy to Lets or Let to Buys.

First Time Landlords are acceptable but at least one applicant must currently own a property in the UK which will need to be validated before an offer can be made. All other applicants must either currently own a property in the UK or have previously owned a property in the UK which can be evidenced with the land registry. Our criteria and products are the same for first time and experienced landlords.

Where possible, we will use the credit reference search to validate property ownership. If this information is not available via the credit reference file or the property is unencumbered we may request the documentation listed below.

England and Wales:

  • Land Registry certificate dated within the last three months which must show at least one of the applicants names, or
  • A copy of a recent mortgage statement dated within the last three months which must show at least one of the applicants' names, or
  • A copy of a mortgage statement over three months old plus last three months bank statements confirming payment. Both must show at least one of the applicants' names

Scotland:

  • Land Registry certificate dated within the last three months. This must show at least one of the applicants' names. Where no date is available on the certificate, adequate proof that this was requested within the last three months is acceptable (either from the Land Registry or the solicitor), or
  • A copy of a recent mortgage statement dated within the last three months which must show at least one of the applicants' names, or
  • A copy of a mortgage statement over three months old plus last three months bank statements confirming payment. Both must show at least one of the applicants' names

Northern Ireland:

  • Land Registry certificate dated within the last three months. This must show at least one of the applicants' names. Where no date is available on the certificate adequate proof (either from the Land Registry or the Solicitor) that this was requested within the last three months is acceptable, or
  • A copy of a recent mortgage statement dated within the last three months which must show at least one of the applicants' names, or
  • A copy of a mortgage statement over three months old plus last three months bank statements confirming payment. Both must show at least one of the applicants'

 Expatriates

We do not currently accept new business applications from expatriate residents.

Where an Expat has returned to the UK, they would need to have been employed for 12 months or Self Employed for 2 years.


 Foreign nationals

Applicants from the EEA should have been resident in the UK for at least 12 months. Foreign Nationals need to have been in the UK for 3 years, with 3 years’ left on their visa or permanent rights to remain and subject to our underwriting criteria.


 Proof of Residence

If the applicant(s) is/are not on the voter's roll at the current address, proof of residence must be provided: e.g. bank/building society statement, credit card statement, or Council Tax statement.

 Refugees

Refugees/Asylum Seekers must have indefinite leave to remain, which must be verified by the documentation from the Immigration and Nationality Directorate. This will consist of a letter confirming that they have been granted "Indefinite Leave to Remain".

A Refugee/Asylum Seeker may have been granted one of the following but these are all unacceptable for mortgage purposes:

  • Exceptional Leave to remain in the UK
  • Humanitarian Protection
  • Discretionary Leave

Income 

 Affordability and Sustainability

Affordability is assessed using the anticipated rental income from the property. In addition to rental coverage, we'll assess personal income when making a lending decision. It's therefore important that the customer’s income is keyed accurately as it may affect the decision.

We expect to see that the applicant can afford their personal commitments so we can be confident that the lending remains sustainable in the event of tenant voids or maintenance and repair costs incurred. An application may be declined where we determine that there is insufficient disposable income to support the borrowing and the customer's personal commitments.

Our rental cover calculation provides for an excess of rent compared to the actual mortgage payment to enable the landlord to cover such eventualities. However if the personal affordability is stretched this may not leave them with the capacity to retain such savings.

We will also take into consideration the additional cost of an increased tax liability for some customers as a result of tax legislation. The legislation will begin to take effect in 2017 and be fully implemented by 2020 and as a responsible lender we must consider future sustainability. An application may be declined where there would be insufficient surplus income to support the borrowing and our customer’s personal commitments after 2020.

We understand that the personal income may not reflect the overall financial picture for the applicant and they may have other assets and savings available. We also understand that the BTL may be in a single name whilst personal financial commitments may be held jointly with another party.

In all cases where the application is subject to manual underwriting (including all Portfolio Landlord applications), a fully completed Customer Profile Form (pdf, 138kB) must be submitted. This enables you to help us understand the full background to the proposed transaction and we can then make an informed lending decision. Useful information which we will require includes:

  • How the customer maintains their commitments
  • How they've built up any reserves, including the deposit
  • Whether they have previous experience of Buying to Let
  • Rationale for sole applications where finances are joint
  • Information about the business for Self Employed customers

 Applicants Not Paid in Sterling

Foreign currency income will not be accepted for new mortgage or remortgage applications, for new and existing customers, including porting, transfers of mortgaged property (TOMP), and further advances.

Applicants need to be a UK resident and registered for UK Tax purposes.

The only exceptions are for TOFE applications. Where an application is received from a UK resident customer who is paying UK tax, but is not paid in sterling, there are two acceptable scenarios;

  • Where the income is to either be paid into a UK bank account or
  • A UK based bank with branches abroad

If the income is paid into an overseas bank account and then transferred to a UK bank account., Where this is the case, all stages of the transaction must be evidence with the relevant bank statements.

The income must be converted into sterling using XE.com and the sterling equivalent should be entered into the system.


 Contractors

Sub Contractors, Fixed/short term contracts and Agency workers.

If tax is paid by the company, the customer is to be treated as employed. The applicant must have continuous employment of 12 months or more with 6 months of the contract remaining or 2 years continuous service in the same type of employment.

Customers should be treated as Self Employed if they pay their own tax or sub contract to more than one company.

I.T and High Value Contractors

For IT contractors on any income and other contractors whose income is more than £500 per day or £75,000 per year, whether Employed, Self Employed, or operating as an Umbrella Company, we’ll accept the gross value of the contract as evidence of income.

All applicants must have:

  • 12 months or more continuous employment in their current contract with six months of the contract remaining, or
  • Two years continuous service in the same type of employment (within the last two years)

The following details should be keyed:

  • Employment status as 'Employed‘
  • Type of employment as 'Fixed, short term or rolling contract'
  • Occupation type as 'Professional'
  • Job title as either 'IT Contractor' or 'High Value Contractor'
  • Income as the gross value of the contract
  • When calculating the annual amount, day rates should be multiplied by 5 then 48. Hourly rates should be multiplied by the number of contracted hours per day then annualised using the same calculation as day rates
  • If the contract isn't available, employment status should be keyed as 'Self Employed' and Tax Calculations and corresponding Tax Year Overviews may be used to verify income.

Evidence of the contract value and duration should be retained for all cases and only submitted if income verification is requested. When submitting documentation, the following information should be provided:

  • Full value of contract or rate of pay and contracted hours / days
  • Customer name and / or their company names, and evidence of ownership
  • Name of the company the applicant is contracted to, if applicable
  • Start and end date of the contract
  • Customer signature / electronic signature

The only scenarios where an IT/High Value Contractor needs to be treated as self employed are where the customer:

  • More than one contract
  • Applicant has set up a limited company and employs other contractors

Construction Industry Scheme Contractors (CIS)

Applications from customers employed on a Construction Industry Scheme (CIS) Contract will be considered. An average of the latest 3 months income should be used and evidence of the income for these applicants must be provided.

Customers should be treated as Self Employed if they pay their own tax or sub contract to more than one company.

Nursing Bank

Applicants who pay their own tax should be treated as Self Employed. Applicants who do not pay their own tax can be considered as employed but must have 18 months or more continuous employment with the current agency, or 2 years continuous service (for at least the last two years as at the date of application) in the same type of employment.

Supply Teachers

Applications must have a current continuous employment of 12 months or more with 6 months of the contract remaining or the customer has 2 years continuous service in the same type of employment.

Professional Sports People

Applications will be considered from Professional Sports People where either continuous employment of 12 months or more with 6 months of the contract remaining or 2 years continuous service (for the last two years as at the date of application) in the same type of employment can be confirmed. It is essential to establish that such individuals will have the ability to sustainably meet the monthly repayments as they near the end of their career or if their career should be ended abruptly due to injury. Funding from corporations/charities/sponsors is not an acceptable form of income.

Zero Hours Contracts

Applications from customers employed on a Zero Hours Contract will be considered. The customer must have been employed on a Zero Hours Contract for a minimum of 12 months. The total of the last 12 calendar months income only will be used and all the income must be evidenced. Where the customer has been employed on a Zero Hour Contract by different employers, but for the same type of work, this can be considered continuous employment.


 Income Types

  • For all applications, at least one of the applicants needs to be in receipt of earned income and/or pension income but Income from all sources will need to be captured and recorded accurately. This includes all full years of Self Employed income, PAYE, Pension and Gross Annual Rental Income for all BTL / LTB properties.
  • All sustainable income must be keyed in POS/One Minute Mortgage, with 100% of the income keyed into the system
  • There is no minimum income requirement. Customers should be registered for UK tax and the source of income should be within the UK. Any residential mortgages must be adequately covered by your client’s current income.
  • The latest payslip (at time of application) is required to verify income (this applies whether the applicant is paid weekly, 4 weekly, fortnightly or monthly).The Payslip must confirm company’s name , Customer’s surname and initial as a minimum requirement. Hand written payslips are not acceptable.
  • Additional payslips may be required where the latest payslip does not represent a true reflection of the applicant's income.
  • We will consider an application with a BFPO address subject to the customer meeting our employment criteria.
  • HM Forces Payslips Only - Customer's surname as a minimum requirement and Pay Date.
  • Retired customers – Latest Bank statement . Where gross pension income cannot be ascertained from the bank statement the latest pension statement dated in the last 12 months or State Pension Forecast statement should be requested.
  • All Income evidence must be retained upon which the declaration is being made for the applicant, as evidence on some of the applications (e.g. underwriting, broker monitoring ) maybe requested. Brokers only capturing one apps income.
Income Type Acceptable? Treat As/Key As Verification Required
Additional Duty Hours Yes Additional Duty Hours N/A
Airbnb No
Area Allowance Yes Town/Area/Car Allowance N/A
Basic Yes Basic Latest Payslip
Bonus Yes Bonus N/A
Bursary No
Call Out Yes Additional Duty Hours N/A
Car Allowance Yes Town/Area/Car Allowance N/A
Carers Allowance Yes Benefits N/A
Cash In Hand No
Child Benefit (Auto Factored into calculation) No
Child Tax Credit Yes Benefits N/A
Commission Yes Commission N/A
Council Tax Benefit No
Disability Living Allowance Yes Benefits N/A
Dividends - Investment Linked No
Dividends - For Company Director Yes Self Employed Latest 2 years Tax Calculations and corresponding Tax Year Overviews
Employment & Support Allowance Yes Benefits N/A
NHS Enhanced Pay (EN) Yes Shift Allowance N/A
Examiners Payroll Yes Additional Duty Hours N/A
Expenses No
First Aid Allowance No
Fixed Annuity Payments (Private) Yes Pension N/A
Flexible Benefit Yes Basic Latest Payslip
Flight Attendant Allowance Yes Additional Duty Hours N/A
Footwear Allowance No
Foster Care Allowance Yes Additional Duty Hours (See Foster Care page for guidance) Latest 2 years Tax Calculations and corresponding Tax Year Overviews
Gambling No
Get You Home Allowance Yes Shift Allowance N/A
Guardian Allowance Yes Benefits N/A
Healthcare Allowance No
HDT Allowance (Home to Duty Travel) Yes Shift Allowance N/A
Holiday Pay Yes Basic Latest Payslip
Housing Allowance (Police Officer) Yes Town/Area/Car Allowance N/A
Housing Benefit No
Income Support No
Industrial Injuries Disablement Benefit Yes Benefits N/A
Insurance Payout No
Investment No
London Weighting Yes Town/Area/Car Allowance N/A
Maintenance Yes Maintenance N/A
Maternity Pay – Providing the applicant intends to return to work on the same terms Yes Basic Annual Income Latest Payslip
Mariner / Seafarers Yes Basic Latest Payslip or Latest Tax Calculations and corresponding Tax Year overviews
Mortgage Subsidy Yes Mortgage Subsidy N/A
Nursing Bank Yes Nursing Banks N/A
Occupational Sick Pay Yes Basic Latest Payslip
Offshore Allowance Yes Additional Duty Hours N/A
On Call Allowance Yes Additional Duty Hours N/A
Overtime Yes Overtime N/A
Pension Supplement Yes Basic Latest Payslip
Pension Tax Credits Yes Pension N/A
Private Pension Yes Pension N/A
Public Holiday Pay Yes Basic Latest Payslip
Rent (Main Income) Yes Self Employed Latest 2 years Tax Calculations and corresponding Tax Year Overviews
Rent (Additional Income) Yes Rental N/A
Savings No
Shift Allowance Yes Shift Allowance N/A
Sleepover Allowance Yes Additional Duty Hours N/A
Standby Allowance Yes Additional Duty Hours N/A
State Pension Yes Pension N/A
Statutory Sick Pay No
Tax Rebate No
Term Time Allowance Yes Additional Duty Hours N/A
Town Allowance Yes Town/Area/Car Allowance N/A
Trust Income No
Uniform Allowance No
Universal Credit No
Unsocial Hours Yes Shift Allowance N/A
War Disablement Pension Yes Pension N/A
War Widower Pension Yes Pension N/A
Widowed Parents Allowance Yes Benefits N/A
Widows State Pension Yes Pension N/A
Work Outside Normal Hours Yes Shift Allowance N/A
Working Tax Credit Yes Benefits N/A
Zero Hours Contract Yes Basic 12 months' worth of payslips (this applies whether the applicant is paid weekly or monthly and could consist of P60 plus subsequent payslips to cover the fill 12 month period

 Length of Employment / Self Employment

Employed applicants will be expected to have been employed for a minimum of 3 months in their current job and had 12 months continuous employment. The definition of 'Continuous' is that there must be no break of more than 14 days between employers.

Self Employed applicants must have been Self Employed for a minimum of 2 years and be able to provide at least 2 years’ worth of trading figures.

Applicants who have transitioned from Employed to Self Employed (in the same line of work) must still meet the Self Employed criteria.

Probationary Period

Applicants on a Probationary period at the start of their permanent contact can be treated as permanent employees.


 Notional Stress Rate

Our rental calculation is based on 125% of the mortgage interest at initial product pay rate or 125% of the mortgage interest at a notional / stress rate whichever is higher. The notional rate is currently 5.5% except for 5year fixed rate products where the notional rate is 5.25%. The notional rate for all further advance applications and porting applications is currently 5.5%. For higher and additional rate tax payers, the calculation will be based on 125% of the rental cover after any additional tax liability has been taken into consideration. Use the rental income calculator to determine the maximum loan available.

If you would like to establish the maximum lending we can offer for a further advance please key a further advance decision in principle.


 Rental Income

Employed or retired applicants, net rental income should always be captured in the 'Additional other income' field as Income from Self Employment.

For Self Employed applicants the last 2 years’ income .Self-employed income should be keyed as the total net profit from all self-employed activity, including rental income.

Any Income from Profit from UK Land and Property will need to be keyed in the appropriate area where it is displayed.

Income which is Self Employment may be seen variously on a Tax Assessment as: ‘Profit from Self Employment’, ‘Profit from UK Land and Property’, ‘Dividends from UK companies’ – depending upon the source of income and company structure. A Limited Company director who takes a salary and dividends should have their total income declared i.e. PAYE plus dividend income.

Rental Income will need to be keyed accurately and evidence retained upon which the declaration is being made for the applicant, as evidence may be requested later on.

For all Remortgages and Further Advances, the current achieved rental income of the property in question should be keyed on POS/One Minute Mortgage as rent achieved per month. For a BTL purchase and LTB remortgage, the income collected will be the anticipated monthly rent of the property in question, once it is let.


 Second Job

In cases where the customer has more than one job, we will consider the following when deciding whether or not to take the secondary income into account. Hours worked, are they sustainable? Are the roles/skills similar? What is the distance between the jobs and the customer’s home? How long has the customer been in both jobs? Is the salary consistent with the type of employment? And the number of days the customer works per week.

Once all of the above has been taken into account, you should key the highest income as the customer's main income, and the income from the Second Job should be keyed as Additional Income.


 Self Employed Applicants

If any of the following criteria applies, the applicant is classed as Self Employed;

  • Where the customer has a shareholding of 33% or more
  • If joint customers own 33% or more between them, treat both customers as Self Employed (both applicants need to hold a % share)
  • Any sub-contractor
  • A customer has a partnership interest in a business, i.e. income is paid by dividends and is not PAYE, irrespective of the percentage shareholding
  • A customer owns a franchise
  • A customer employed by a Private Limited Company (LTD) or Limited Liability Partnership (LLP) who receives a salary (PAYE) and dividends as part of their remuneration package and / or Net Profits
  • Self Employed applicants must have been Self Employed for a minimum of 2 years and be able to provide at least 2 years’ worth of trading figures.

Where Income verification is required, the following documents should be provided:

  • Preferred – Latest 2 years Tax Calculations accompanied by corresponding Tax Year Overviews, and the tax due for each tax year must exactly match the corresponding Tax Calculation figure for Income Tax and National Insurance due
  • Alternative – Latest 2 years Business/Company Accounts

We do not accept dividends from retained profits.

The most recent Tax Calculations/Tax Year Overview/Accounts must be dated within the last 18 months. Full years are required and all previous years need to be keyed in all cases.

The following details must be visible on the Tax Calculations:

  • HMRC Logo
  • Unique Tax Reference (UTR)
  • Customers name
  • Tax Year (most recent no older than 18 months old), and the following wording:

‘This is a copy of information held on your official online SA tax account with HMRC and submission is 100% complete‘

Tax Calculations produced by accountants' commercial software (accompanied by corresponding Tax Year Overviews) are acceptable provided they show the following:

  • Unique Tax Reference (UTR)
  • Customers name
  • Tax Year (most recent no older than 18 months old)

 Self Employed / Contractors

Income Type Acceptable? Employed or Self Employed Treat As Evidence
Contractor - If applicant earns more than £500 per day or £75,000 per annum - providing 12 months or more continuous employment with 6 months of contract remaining OR 2 years continuous service (for the last 2 years at the date of the application) in the same type of employment Yes Employed Basic Annual Income Copy of the contract
Contracts - Fixed / Short / Temporary - If
    Company
Paying Tax (Excluding CIS contractors) - providing 12 months or more continuous employment with 6 months of the contract remaining OR 2 years continuous service (for the last 2 years at the date of the application) in the same type of employment
Yes Employed Basic Annual Income Latest payslip
Contracts Fixed / Short / Temporary - If
    Customer
Paying Tax
Yes Self Employed See Self Employed Applicants Last 2 years Tax Calculations and corresponding Tax Year Overviews or last 2 years finalised accounts
IT Contractors - providing 12 months or more continuous employment with 6 months of the contract remaining OR 2 years continuous service (for the last 2 years at the date of the application) in the same type of employment Yes Employed Basic Annual Income Copy of the Contract
CIS Contractors Yes Self Employed See Self Employed Applicants Last 2 years Tax Calculations and corresponding Tax Year Overviews or last 2 years finalised accounts
Employed in a Family Business Equal to or greater than 33% Invested interest and/or receives dividend or net profit as part of their reward package Yes Self Employed See Self Employed Applicants Last 2 years Tax Calculations and corresponding Tax Year Overviews or last 2 years finalised accounts
Ltd Company – Director/Shareholder - Wanting to use - Basic PAYE salary ONLY less than 33% shareholding Yes Employed Basic Annual Income Latest payslip,(this applies whether the applicant is paid weekly or monthly).
Ltd Company – Director/Shareholder - Wanting to use - Basic PAYE salary ONLY Equal to or greater than 33% shareholding Yes Self Employed See Self Employed Applicants Last 2 years Tax Calculations and corresponding Tax Year Overviews or Last 2 years finalised accounts
Ltd Company – Director/Shareholder - Wanting to use - Basic PAYE salary + dividends ONLY Irrespective of shareholding Yes Self Employed See Self Employed Applicants Last 2 years Tax Calculations and corresponding Tax Year Overviews or Last 2 years finalised accounts
Ltd Company – Director/Shareholder - Wanting to use - Basic PAYE salary + Net Profits ONLY irrespective of share holding Note: Net Profits cannot be used without a referral to our Underwriters Yes Self Employed See Self Employed Applicants Last 2 years Tax Calculations and corresponding Tax Year Overviews or Last 2 years finalised accounts
Self employed - Sole Trader Yes Self Employed See Self Employed Applicants Last 2 years Tax Calculations and corresponding Tax Year Overviews or Last 2 years finalised accounts
Self employed / Share holding of a Non Ltd Company (ie Partnership) Taxable Income Yes Self Employed See Self Employed Applicants Last 2 years Tax Calculations and corresponding Tax Year Overviews or Last 2 years finalised accounts
Partner of LLP receiving profit share as part of their salary package irrespective of share of equity Yes Self Employed See Self Employed Applicants Last 2 years Tax Calculations and corresponding Tax Year Overviews or Last 2 years finalised accounts
Employee of LLP - not equity shareholding partner. Yes Employed Basic Annual Income Latest Payslip (this applies whether the applicant is paid weekly or monthly)
Seasonal Contract No
Piecework Contract No

 Tax on Rental Income

Under tax rules which will begin to take effect in 2017 and be fully implemented by 2020, finance costs will not be tax deductible but tax relief can be claimed at the basic rate, whatever rate of tax the customer pays. This will result in an increased tax liability for some landlords. Where applications are referred for manual review, we will consider the additional tax liability where appropriate.

Customers must seek independent tax advice if they're unsure how the tax rules will affect them.

We will consider the tax liability when calculating the rental cover and maximum loan. For higher and additional rate tax payers, the calculation will be based on 125% of the rental cover after any additional tax liability has been taken into consideration. Use the rental income calculator to determine the maximum loan available.

We will also consider any additional tax liability when applications are referred for manual review.


Lending 

 Additional Borrowing

When applying for Additional Borrowing the product chosen must be from the same scheme as the main borrowing; the minimum additional borrowing is £5,000. A flexible product cannot be combined with any other product type.

Additional borrowing applications will not be permitted within 6 months of completion of the original mortgage.


 Additions To Loan

The items that can be added on to the loan amount are higher lending charge (where payable) and product fee. The maximum amount of add-ons as a percentage of purchase price or valuation (whichever is lower) must not be more than 4%.


 Assignable Contracts

Applications which involve assignable contracts or irrevocable powers of attorney in favour of intervening sellers are not acceptable. Any other structure to the transaction which has a similar effect should be reported to us. Assignable contracts allow the original buyer to sell the property before legal completion, by assigning the contract to buy the property to a new buyer after contracts have been exchanged with the developer.


 BUSINESS / CONSUMER BUY TO LET

There are two categories of Buy to Let, Business Buy to Let (BBTL) and Consumer Buy to Let (CBTL), both of which are available through BM Solutions.

A Business Buy to Let (BBTL) is a mortgage used to purchase/remortgage a property that is/was purchased with the intention to let to a non-family member or where the applicant is a professional landlord and has other BTL properties let out.

A Consumer Buy to Let is when the customer has entered into or is entering into a contract not wholly or predominantly for business purposes. You will need to obtain Consumer FCA permissions before submitting CBTL applications. A Consumer Buy to Let is:

  • Where the property was not originally purchased for letting and the customer does not let out any other properties i.e. Customer or a family member has previously lived in this property
  • Where the majority of the borrowing is for non-Business Purposes

The answers provided will establish whether the loan is classified as a BBTL or CBTL. BBTL mortgages are not regulated and CBTL mortgage is regulated by the HM Treasury.


 Buy to Let Capital Raising For Home Improvements

Where the loan purpose is for Home Improvements for a BTL property, the 'BTL Property Improvement' loan purpose should be used.

If the 'Home Improvements' option is selected, we will assume this is for Home Improvements to a residential (non BTL) property, therefore Consumer BTL regulation will be applied. Where the loan purpose is Business BTL, the application will be subject to further decision tree questions before we can confirm how the application will be regulated.


 Buy to Let Capital Raising To Buy Another Property

When borrowing against an existing BTL to raise a deposit for another BTL purchase, the 'BTL Deposit' loan purpose should be selected.

If Capital Raising to purchase a residential (non BTL) property, the '2nd Property Purchase' option should be selected. This would be regulated as a Consumer BTL loan. Where the loan purpose is Business BTL, the application will be subject to further decision tree questions before we can confirm how the application will be regulated.


 Criteria


  • Applicants can only apply for a Let to Buy when they are buying a new main residence for themselves and their family
  • Applicants must be able to afford future residential commitments from their earned income
  • A £2,000,000 lending limit applies to all Buy to Let, Let to Buy, Consent to Let, Second Home Loan and House 2 House borrowing across the Retail Division of Lloyds Banking Group
  • A maximum of 3 properties applies to all Let to Buy, Buy to Let, Second Home Loan, Consent to let and House 2 House lending across the Retail Division of Lloyds Banking Group. This consists of Bank of Scotland, Birmingham Midshires, TMB, Halifax, Intelligent Finance, Lloyds Bank, C&G and Scottish Widows. Where more than 3 properties are held no additional borrowing is allowed: For information on our BTL portfolio landlord criteria please visit our Portfolio Landlord page.
  • Maximum lending on each individual Buy to Let or Let to Buy property of £1 million
  • Confirmation of anticipated rental income will be provided by the valuer as part of the valuation
  • Minimum acceptable property value or purchase price (whichever is the lower) is £40,000
  • The property may be let on a single Assured Shorthold Tenancy (in England & Wales), a short assured tenancy (in Scotland), a private tenancy (in Northern Ireland, in which case when creating the tenancy it must comply with the provisions of the Private Tenancies (Northern Ireland) Order 2006)
  • The maximum tenancy term is 12 months although a maximum tenancy of 3 years is acceptable when the tenancy is in the form of a Department for Communities and Local Government (DCLG) model agreement of September 2014 (or as amended) or the Scottish Equivalent
  • The property may be let to a company on a corporate let. The maximum term is 12 months. Our consent is not required to renew the tenancy, but the occupiers need to be named on the tenancy and they must be employees of the tenant company
  • The maximum number of occupants is 5. They must all be party to the agreement. It is the landlords responsibility to ensure that all legislation is complied with including (but not restricted to) legislation relating to Tenancy Deposit schemes and HMOs (Houses in Multiple Occupation)
  • For larger property e.g. where there is a potential of more than five lettable rooms, the valuer must be satisfied that the property and the local market reflects single family letting arrangements
  • Properties subject to Local Authority Homes in Multiple Occupation (HMO) licensing may be acceptable, subject to the valuer’s assessment of suitability based on our requirements
  • Tenants in the following categories are not acceptable:

    • Asylum seekers
    • Persons who have or may acquire diplomatic immunity
    • Social landlords (such as Housing Associations)
    • Holiday lets
    • Rent Act protected tenants
    • Agents of any of the above
    • Family members

    The tenancy agreement must provide that assignment or sub-lettings to tenants in these categories are not allowed

  • Multiple tenancies (where each tenant signs a separate agreement) are not acceptable
  • If the property is in Scotland, the landlord must register with the relevant Local Authority
  • Applications which involve a sale and leaseback arrangement are not acceptable
  • Limited company purchases – no lending allowed to purchase from own limited company
  • Trust Deeds are not acceptable
  • The property must not be subject to occupancy restrictions
  • Applications will not be accepted where a second charge is being completed at the same time as the BTL application


 Concessionary (Discounted) Purchase

We do not accept applications where the property is being purchased at below full market valuation (Concessionary Purchase). The exception is the purchase of a New Build property where the value has increased between agreement to purchase and building completion. Builder Incentives are acceptable subject to our existing criteria.


 Conveyancers

In order to act jointly for both the customer and Birmingham Midshires, or to act solely for Birmingham Midshires, a conveyancer must be on the Lloyds Banking Group panel of conveyancers.


 Credit Scoring

Our application process involved credit scoring which is explained in our credit scoring guide.


 Deposits

For all Buy to Let applications, apart from remortgages, the source of deposit must be captured and evidence must be retained. The deposit should come from the applicant(s) own resources. However, a builder's deposit up to a maximum of 5% of the purchase price is allowable on applications where the LTV does not exceed 75% on a New Build property. The valuer must be aware of any incentive and refer to this in the valuation report.

For certain applications, deposit verification will be requested. Evidence will also be required when the application is subject to underwriter review, and/or a message is displayed at DIP submission and the Additional Requirements section of the Submit Application Results screens at full application.

The following deposits are not acceptable:

  • Any deposit coming from a business, whether from a business current account, a business loan or directors loan account is not acceptable
  • Vendor gifted deposits are not acceptable
  • Second charges are not an acceptable source of deposit

A list of acceptable documents is detailed in the following sections: Please note that these are the minimum requirements and you will be expected to send in the appropriate documents according to the type of deposit being verified.

Proof of deposit documentation will only be reviewed once evidence of the full deposit amount shown in the required documents as detailed below are received. Please obtain and send in full deposit documentation to ensure your case is processed promptly.

Equity:

  • The credit reference summary should confirm that a mortgage already exists
  • If no mortgage is found on the credit reference file a copy of the most recent mortgage statement (within the last 12 months) will be requested
  • In order to validate the equity amount, we will also request the Sales particulars
  • If the customer is remortgaging or taking a further advance on an existing property where the funds will be used as a deposit on a new purchase through BM Solutions, we would want to either see the funds in an account (follow savings) or an offer guaranteeing the lending

Gift:

Gifted deposits are acceptable, but only from family and must be non-repayable. The property cannot be let to, or purchased from a family member if a gifted deposit is involved. Evidence of the source of deposit must also be retained by the Broker in all cases, as this may be requested for a small number of applications.

Inter-Family purchases are acceptable, subject to it being sold at full market value. The purchaser must provide their own deposit, and this must come from an acceptable deposit source other than 'Gift'. The purchaser also must be a resident in the UK.

Vendor Gifted Deposits are not acceptable.

Brokers will need to provide a letter written by the donor with all of the following requirements;

  • Is addressed to BM Solutions/Birmingham Midshires
  • Details the person/people gifting the deposit and the current name/address of the applicant(s), together with the property being purchased
  • Confirms the relationship between the donor(s) and the applicant(s). The donor should be a family member. See definition of family members below.
  • Details the donor's full address and is signed
  • Confirms the amount of deposit, and that it is non repayable and that the donor will hold no interest in the property following completion of the mortgage
  • Is dated within the last 3 months

For gifted deposits, in addition to a letter from the donor confirming the gift, Brokers must also provide the latest UK bank statement or passbook showing evidence of the deposit funds in the donor account. Alternatively, a letter from the donor's UK bank confirming the funds are available may be provided.

Additional statements or other documentation may be requested where required.

The definition of a family member is someone who is related to at least one of the applicants:

  • By birth/blood relative
  • By marriage or civil partnership (including step children, adopted children and in-laws)
  • As 'Common Law' partners or co-habitees

Acceptable Not Acceptable
Parents, step parent, parents in laws Family Friend
Brothers and sisters, half brothers and sisters, step brothers and sisters, brother and sister in laws Employer
Grandparents, step grandparents Developer/ Landlord
Auntie/Uncle (related by blood)
Niece/ Nephew
Auntie/Uncle (related via marriage)
Partners living with applicant either common
law or co-habitee
Cousins
Applicants’ children, step children, son and
daughter in laws and adopted children
Foster/Guardian children

Inheritance:

If requested, either UK based Current Account or Savings Account statements will need to be provided, or alternatively a passbook. Please see Savings for more details.

Loan:

Deposit funds should come from a personal stake, and as such, a deposit provided by way of a loan is not acceptable.

Military Personnel:

The Forces Help to Buy scheme (previously called Long Service Advance of Pay) cannot be used as a deposit for a Buy to Let property.

Previous Property Sale:

Please follow the guidance under the Equity or Savings options

Savings (held in the UK):

If requested, you will need to provide as a minimum:

Current Account, ISAs or Savings Account statements with all of the following requirements;

  • 3 months' statements, showing applicant(s) name, sort code, account number and company name (or latest annual statement if longer term savings plan)
  • Statements should be in the same name as at least one of the applicants named on the new mortgage
  • Latest statement must show a closing balance covering the deposit required
  • Any recent large or unusual deposits into the account will require clarification to ascertain proof of origin. Where funds have originated from a Business Account, you must obtain confirmation from the accountant that the withdrawal will not have a negative impact on the business.

Shares, with all of the following requirements;

  • Certified copy of Share Certificate showing applicants name and address
  • Evidence of current share value calculation showing the value of shares

    • e.g. 5000 shares x £3 current share prices = £15,000

Premium Bonds, you will need to provide the following;

  • Premium Bond Certificate showing name of applicant and value of premium bond(s) held
  • Additional documentation to verify applicants name and address is same as applicant named on the premium bond

Or a passbook with the following requirements as a minimum;

  • Passbook should show applicant(s) name and account number
  • Passbook should be in the same name as at least one of the applicants named on the new mortgage
  • Passbook should cover, at least, the latest 3 months' transactions and the closing balance must cover the deposit required
  • Any recent large or unusual deposits into the account will require clarification to ascertain proof of origin

Where funds are held over multiple accounts or sources, the above process should be followed for each account.

Other Source:

We will need to ascertain exactly where the deposit is coming from. If the deposit type does not align to one of the above listed options, it is not acceptable.


 Family Purchases

It is acceptable to purchase a BTL property from a family member, provided the deposit is sourced from the applicant’s own resources. Gifted deposits are not acceptable in these circumstances, even if the donor is a different family member from the vendor.

Any BTL property cannot be let to a family member.


 LTV/Loan Size

The maximum LTV is 75%, with loans permitted between £25,001 and £1million: For information on our BTL portfolio landlord criteria please visit our Portfolio Landlord page.

This includes New Build properties.

There is no variation in LTV limits for flats.

Certain Buy to Let products have a lower max LTV, where a product with a lower LTV is combined with a product with a higher LTV the lower LTV will apply to the whole loan.

Product Transfers are available up to a maximum LTV of 125%

If the individual loan amount or total borrowing exceeds £500,000 the application will be subject to a full underwriter review which may lead to additional information being requested.


 Loan Purpose

Loan purpose is a key factor in determining whether lending will be unregulated Business BTL or regulated Consumer BTL.

When applying for a Remortgage with Additional Borrowing or a Further Advance, the loan purposes listed below will be available via our online application system:

Business BTL loan purpose

  • Purchase of equity
  • Purchase of freehold
  • Purchase of final share
  • Purchase of land adjoining the property
  • BTL deposit
  • Broker fee
  • BM mortgage deposit
  • BTL property improvement
  • Balance to remortgage

Consumer BTL loan purpose

  • Debt consolidation
  • Holiday
  • Caravan/car/boat
  • Divorce settlement
  • School/hospital fees
  • Wedding
  • 2nd property or land purchase
  • Home improvements
  • Repay BM unsecured loan
  • Other

The full list of loan purposes above may not be available for every application. Availability of each loan purpose will depend on the circumstances of an individual application.

If multiple loan purposes are selected, the level of regulation applied will depend on where the majority of the loan value is based, i.e. if the majority of the loan value is based on loan purposes in the Business BTL list, the loan will be unregulated. Where the loan purpose is Business BTL, the application will be subject to further decision tree questions before we can confirm how the application will be regulated. If there are equal elements of Business BTL and Consumer BTL loan purposes, the loan will be treated as Consumer BTL.


 Minimum Loan

The minimum loan amount is £25,001. For further advances, the minimum loan amount is £5,000.


 Minimum Valuation

The minimum acceptable property value or purchase price (whichever is the lower) is £40,000.


 Remortgage

For Remortgage applications, including unencumbered properties, a customer must have owned the property for a minimum of 6 months.

The following reasons for capital raising are not acceptable:

  • Gambling
  • Injection of capital into a business
  • Start up of a new business
  • Purchase of timeshare

Underwriters reserve the right to request evidence of how funds will be used if they have concerns.


 Repayment Methods

Repayment, Interest Only or a combination of the both are acceptable. The method(s) for repaying Interest Only element must be specified.


 Term

Our minimum term is 5 years for mortgages and 2 years for further advances.

Our maximum term is 40 years, subject to maximum age limits.


Property 

 Criteria

The property must meet minimum criteria. Must be habitable, readily saleable, be structurally sound and be able to have buildings insurance arranged upon it. If outstanding works are such that the property is not fit for letting then all of the advance will be retained until works are complete and the valuer confirms the property is fit to let.

The property must be situated within the UK and subject to a UK legal jurisdiction.

Property acceptability is based on a satisfactory valuation report from the bank's appointed valuer. Non-standard construction will be assessed on individual merit. Certain types of pre-cast reinforced concrete (PRC) construction are designated defective and may not be acceptable unless repaired. We will be guided by the suitability of all mortgage properties by the Valuer.

  • Adjoining property purchases are acceptable however will be subject to valuer’s comments.
  • Houseboats and mobile homes/park homes are not acceptable.
  • Properties with Annexes are permitted as long as the annexe forms part of the main title and are not split. There should also be no separate tenancy agreement in place with respect of the annexe accommodation.
  • Studio flats are acceptable subject to valuer’s comments. There is no minimum size (sq ft) requirement, the acceptability is subject to valuer’s comments.
  • Right to Buy/Shared ownership applications are not acceptable.
  • If a flat is part of a conversion where the total number of flats in the scheme is above eight, the valuer must confirm that the whole conversion project has been or will be completed to a high standard.
  • Flats above/adjacent to a business which is owned by the same person are not acceptable. Flats above/adjacent to a business not owned by the same person are subject to valuers comments.

For details of our requirements for security where a property has been converted into flats or is part of a purpose-built block, see Tenure of flats.


 Builder Cash Incentives

Builder cash incentives include but are not limited to deposit contributions, cash-backs, contribution to legal fees/stamp duty, and mortgage subsidies.

Builder cash incentives will typically be acceptable provided the value of these does not exceed 5% of the lower of purchase price/valuation. Cash incentives in excess of this amount may result in a reduction in the maximum loan available.

All builder cash incentives must be declared at the point of sale, and all lending decisions are based on either the valuation or purchase price (whichever is lower).


 Buy to Let Property Address

The Buy to Let property address must not be the same as the applicant(s) correspondence address.


 Distressed Sales

Applications which involve a distressed sale are not acceptable.


 Exposure Limits

Where a site is assessed as suitable for lending, we'll no longer apply an initial cap on our lending exposure. We'll continue to monitor applications (exposure) as the development progresses and may restrict further lending only if concerns arise.

There may be a small number of sites where we decide not to lend on due to specific market or site conditions.


 Houses in Multiple Occupation

Properties subject to Local Authority Homes in Multiple Occupation (HMO) licensing may be acceptable, subject to the valuer’s assessment of suitability based on the following requirements:

  • Flats above a business which is owned by the same person are not acceptable. Flats above a business not owned by the same person are subject to valuer's comments.
  • Maximum of five unrelated tenants
  • The property must be suitable for standard residential occupation
  • Institutional type properties, for example hostel accommodation/bedsits/shared accommodation comparable to halls of residence, are not acceptable
  • Large properties i.e. where there are more than five lettable rooms, in an area where letting arrangements are predominantly multiple-tenancy, are not acceptable.
  • The property may be let on a single Assured Shorthold Tenancy (in England & Wales), a short assured tenancy (in Scotland), a private tenancy (in Northern Ireland, in which case when creating the tenancy it must comply with the provisions of the Private Tenancies (Northern Ireland) Order 2006)
  • The maximum tenancy term is 12 months although a maximum tenancy of 3 years is acceptable when the tenancy is in the form of a Department for Communities and Local Government (DCLG) model agreement of September 2014 (or as amended) or the Scottish Equivalent
  • The property may be let to a company on a corporate let. The maximum term is 12 months. Our consent is not required to renew the tenancy, but the occupiers need to be named on the tenancy and they must be employees of the tenant company
  • The maximum number of occupants is 5. They must all be party to the agreement. It is the landlords responsibility to ensure that all legislation is complied with including (but not restricted to) legislation relating to Tenancy Deposit schemes and HMOs (Houses in Multiple Occupation).

 Inherited Properties

We may accept inherited properties once they have gone through probate. The property needs to have been owned for 6 months and processed as a Remortgage.

If the customer has not owned the property for 6 months and they are raising money for one of the following reasons, you will need to submit a paper application and it will be subject to an underwriter review:

  • Buying out beneficiaries
  • Paying off a mortgage/secured debt against the property
  • Making home improvements to the inherited property

 Leasehold Properties

New lending, Remortgage or Further Advance applications on leasehold properties are only acceptable if there is at least 70 years left on the lease at the time of application.


 New Build

An Initial Occupancy/New Build property is classed as any property being occupied and/or sold for the first time on the open market in its current state and includes newly converted and refurbished properties. These will fall into one of the following categories:

  • Newly built property
  • Refurbished property i.e. refurbishment of an existing residential property. Typically a re-furbished property will be considered as initial occupancy where the vendor is a builder/developer and the property has been vacated to allow for the refurbishment to be undertaken
  • Newly converted property i.e. conversion of an existing non residential property. An example of this would be an existing mill converted into flats
  • A property, either new or converted (as above), that has been tenanted and is now offered for sale for the first time on the open market by the builder/developer

The property must be subject to one of the following building control and monitoring requirements:

  • Building Standards Indemnity Scheme from a warranty provider accepted by Lloyds Banking Group:

    • NHBC
    • Premier Guarantee - includes the LABC New Homes Warranty and LABC Hallmark Scheme
    • Building LifePlans Ltd (BLP)
    • CRL Management Limited - previously known as Construction Register Limited (CRL)
    • Checkmate
    • Buildzone
    • Advantage HCI
    • Global Home Warranties
    • International Construction Warranties (ICW)
    • Protek
    • Q Assure Build
    • Aedis

For the property to qualify as one acceptable for monitoring by a consultant it must be either:

  • A single detached property (either self-built or otherwise) where construction is monitored by a consultant employed directly by the customer.
  • A property built by a self-build group where construction is monitored by a consultant employed by that self-build group.
  • A property forming part of a small solely residential development comprising not more than 15 units in total where construction is monitored by a consultant employed by the builder or developer. (If flats/maisonettes are involved, each individual flat/maisonette counts as one property). Developments containing more than 15 units need an acceptable form of building standards indemnity.

 Scottish Valuations

In Scotland, a re-type/transcription report from a Generic Mortgage Valuation Report (GMVR) attached to a valid Home Report prepared to permit marketing of the property is no longer acceptable for a Buy to Let following best practice advice issued by RICS (Scotland), which means that it will no longer contain a rental valuation.

For further clarification please contact your BDM.


 Sub Sales and Back to Back Transactions

Sub-sales and back to back transactions are not acceptable. A sub-sale occurs when a property is bought and then sold on within six months, i.e. the borrower is buying the property from someone who has themselves bought the property less than six months before.

A back to back transaction is a type of sub-sale where the intervening seller buys from the original seller and sells on to the borrower on the same day or within a few days. We also regard as sub-sales cases where the seller acquires the freehold (or superior leasehold) title to the property, which they then immediately sell on to the borrower by the grant to them of a lease (or sub-lease).


 Tenure of flats

A freehold flat is only acceptable in the circumstances listed below.

Where a property has been converted into no more than four units or is within a purpose build block, any leases should already be in place and not created at the same time as the mortgage application. We will consider lending subject to the following requirements:

Tenure is leasehold and the applicant does not own the freehold or share of freehold:

  • The conveyancer will ensure the lease meets our standard requirements.

Tenure is leasehold and the applicant owns / will own on completion the freehold of the whole building

  • Our charge must be registered on the freehold of the whole building and the leasehold interest of the unit. The conveyancer will ensure the lease meets our standard requirements
  • The mortgage along with the freehold and leasehold titles must be in the same name. It is not acceptable to hold the freehold in a Ltd company with the customer as sole director, majority shareholder or with any family member
  • It is only acceptable for the customer to own one unit in the whole building, including any new applications

Tenure is leasehold and the applicant owns / will own on completion a share of the freehold of the whole building

  • Our charge must be registered on the leasehold interest only. The conveyancer will ensure the lease meets our standard requirements
  • It is only acceptable for the customer to own one unit in the whole building, including any new applications

Tenure is freehold

  • The security will be registered on the freehold of the whole building and be processed as a freehold house
  • The applicant must own the freehold personally in their own name
  • The mortgage and freehold title must be in the same name. It is not acceptable to hold the freehold in a Ltd Company with the customer as sole director, majority shareholder or with any family member
  • All units other than the freehold unit on which we’re lending must be subject to long leases (minimum 70 years)

For developments of more than four units:

  • Tenure must be leasehold
  • A management company must be in place
  • Our customer may hold a share in the management company
  • The conveyancer will ensure arrangements in connection with the management company are acceptable
  • Our mortgage must be registered on the leasehold title

 Use of property

The following property types are not acceptable as security:

  • A dwelling on a single title must not be split into separate units of accommodation (e.g. house converted into two flats). In these situations, each flat would need its own title
  • Any property being purchased from and let to the same family member
  • Bedsits 
  • Commercial Property
  • Ex-local authority flats (unless the majority of the building is owner-occupied)
  • Farms or property with land that is subject to commercial agricultural use
  • Live/Work units
  • Mobile homes/Houseboats
  • Property assessed as unsuitable security by the valuer
  • Property with restricted occupancy
  • Property that is designated defective under the Housing Defects Act 1984
  • Property on which Buildings Insurance cannot be arranged
  • Right to Buy/Shared Ownership applications
  • Timeshares

Existing customer 

 Flexible Mortgages

  • Flexible products cannot be mixed with any other product type
  • We will accept a minimum of 14 days and up to 3 month's notice of the customers intention to use any of the features
  • A regular instruction cannot be accepted e.g. miss every December payment
  • Drawdown facility must be for a minimum of £25,001.There must be sufficient equity in addition to the minimum initial advance of £25,001 to offer a drawdown facility. The drawdown facility must be taken in withdrawals of no less than £1,000
  • This mortgage is not available for standalone Additional Borrowing. Only accounts whose main loan is Flexible can have Additional Borrowing on the Flexible product
  • Secured personal loans cannot be taken on a Flexible basis
  • Additional Borrowing will only be allowed once the drawdown facility has been used up, e.g. should the customer have a £10,000 drawdown facility remaining and they would like Additional Borrowing for £25,000, they must use the £10,000 drawdown facility and take Additional Borrowing for £15,000. In addition, stored overpayments will also need to be used prior to Additional Borrowing being agreed
  • Flexible features will be withdrawn under certain circumstances outlined within the Terms & Conditions
  • BTL Flexible Loan products are eligible to port once during the reversionary period, but the draw down facility will need to be re-assessed against current criteria for affordability. No further porting would be allowed, however with regard to Further Advances the following rules will apply;

    • Applications submitted after 4th November 2013 are only eligible for porting during the initial incentive period
    • Applications submitted prior to 4th November 2013 are eligible for porting whilst they remain within the initial incentive period and are eligible to port once during the reversionary period. No further porting would be allowed. The new account must meet current criteria at the time of submission in order for porting to be allowed
  • Drawdown facility is valid for three years after completion
  • The customer can miss two payments per rolling 12 month period subject to no arrears within the last six months and six consecutive payments have been made since taking the mortgage
  • The customer will receive written notification of any agreement to adjust payments / take payment holiday etc.
  • Underpayments may be made providing the customer has made previous overpayments, and at least six months consecutive payments have been made since taking the mortgage. They may reduce their payments until the effect of any overpayments have been eroded
  • Overpayments, drawdown facility, drawdown of overpayments and daily interest are available immediately. The drawdown facility will not be available on Additional Borrowing.
  • Repayment holidays and underpayments are available after the first six monthly payments have been made (subject to terms and conditions).

 Overpayments

We currently allow 10% overpayment of the capital balance without incurring any Early Repayment Charges in a rolling 12 month period. The rolling 12 months begins at either the anniversary date of completion of the main account or any subsequent Product Transfer that may have taken place.


 Payment Holidays

Payment holidays are not allowed


 Portability

With the exception of all Let to Buy products, all products are portable. This means that the customer can keep the same rate and term of their chosen mortgage if they move during the initial product rate period, subject to current lending criteria.

If either the scheme or their circumstances change, they may not be able to keep this product and any Early Repayment Charges will be payable.


 Regulated Mortgages

BM Solutions no longer accepts any changes to existing Regulated mortgages held with us. This includes the following schemes;

  • Residential
  • Buy to Let (where it is let to a family member)
  • Self Build
  • Self Certified
  • Sub Prime
  • Mortgage Plus

We cannot offer any contractual changes to existing mortgages including Further Advances, Product Transfers, Transfer of Equity or Repayment Term/Type changes. Please note that where the original mortgage was deemed as regulated, the status of the mortgage will never change.

If you have a customer who would like to make a change to their account and their existing regulated mortgage is held with us you have the following options;

  • The customer can contact our Specialist Remortgage Team on 0345 071 0231
  • You can review the whole of market for options for the customer to suit their circumstances to Remortgage to another lender

For the use of mortgage intermediaries & other professionals only

If you do not have professional experience, you should not rely on the information contained on this site. If you are a professional and you reproduce any part of the information contained on this site, to be used with or to advise private clients, you must ensure it conforms to the Financial Conduct Authority's advising and selling rules.

These pages are for the use of those people who are resident and ordinarily resident in the UK and should not be regarded as an offer or invitation to sell Mortgage products in any jurisdiction other than the UK.

Birmingham Midshires is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered office; The Mound, Edinburgh, EH1 1YZ

Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register number 169628. Telephone number 0345 850 5000. Telephone calls may be monitored or recorded.

Financial Adviser - Service Awards 2016

House Purchase
Remortgage
First Time Buyer
Existing Mortgage Customers only
Available for further borrowing
Further Borrowing only
Only available with BM Conveyancing
Calculate Borrowing
Click the ? icon to show help with using this Calculator