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Buy to Let Mortgages
Buy to Let Tracker
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Buy to Let Applicant details
Minimum age: 18
Maximum age: 75 years at the end of mortgage term
Not available to first time buyers.
Definition of confirmed income
100% of basic salary, cost of living allowance, housing or rent allowance,
service/state pensions and car allowance.
We also consider up to 60% of regular or non-guaranteed overtime, mortgage subsidy, bonus and commission. Exclusions - travel allowance and expenses.
Applications which involve a sale and leaseback arrangement are not acceptable.
A minimum income per application of £25,000 per annum is required.
Minimum employment period
Employed applicants will be expected to have been employed for a minimum of
3 months
in their current role
(12 months continuous employment).
Self-employed applicants would normally be expected to have been self-employed for a minimum of 12 months.
Documentation required
All existing mortgage holders/local authority tenants:
Latest lender's or landlord's statement
A copy of the Assured Shorthold Tenancy Agreement may be required for further advance applications.
Properties being remortgaged to BM Solutions:
Evidence of last 12 months mortgage payments
Each case is considered on an individual basis. We may request additional information where considered appropriate and relevant to the lending decision.
Property details
Household insurance
Property will only form an acceptable security if insurance cover, under normal terms including subsidence and flood cover is confirmed.
Conveyancers
Must be on the Lloyds Banking Group panel of conveyancers and will also be instructed to act on behalf of Birmingham Midshires.
Security
First mortgage on freehold properties in England, Wales and Northern Ireland, feudal properties in Scotland or leasehold properties in England, Wales and Northern Ireland with at least 70 years remaining on the lease at the time of application.
If a flat is part of a conversion where the total number of flats in the scheme is above 8, the valuer must confirm that the whole conversion project has been or will be completed to a high standard. Freehold flats/maisonettes are unacceptable. Residential security only.
We require that a newly built property (or one being occupied for the first time) has the benefit of a 10 year warranty from the National House Building Council (NHBC) or Zurich Municipal Insurance. The Zurich warranty may be extended to 15 years. The exception to NHBC or Zurich Municipal cover is where an architect or qualified surveyor is employed by the applicant to supervise the building of the property (certain other qualified consultants may be acceptable - please refer).
Minimum acceptable property value or purchase price (whichever is the lower) is £40,000.
Loan details
Minimum loan:£25,001 (house purchases and remortgage)
Maximum loan:£1million
Term: 5-40 years
LTVs purchase and remortgage
75% £25,001 to £1million
As shown in the product grid, 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.
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%
Additional Borrowing
When applying for Additional Borrowing the product chosen must be from the same scheme (eg. Buy to Let) as the main advance; the minimum Additional Borrowing is £1,000. Additional borrowing applications will not be permitted within 6 months of completion of the original mortgage.
Free Remortgage Service (where applicable)
The Free Remortgage Service is available on all properties in the UK, using BM
Solutions designated remortgage service through ENACT.
An additional charge will be made for any non-standard legal work including deeds of postponement, transfers of equity and registering of title. Any additional charges will be advised by ENACT to the borrower prior to the work being carried out.
Please note remortgage products offering the Remortgage Service and other incentives must be taken as a complete product.
Remortgage
BM Solutions cannot remortgage a property if it has been owned for a period of less than 6 months.
Repayment methods
Capital and interest, interest only or combination. The method(s) for repaying interest only element must be specified.
Monthly payments
All payments must be made in sterling by direct debit through the UK direct debit system. The direct debit must be in place prior to completion.
Portability
All products are portable which means that you can keep the same rate and terms of your chosen mortgage if you move during the product period. If either the scheme or your circumstances change you may not be able to keep this product and any early repayment charges will be payable.
Deposits
The deposit for any purchase 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 85%. Where there is a purchase at undervalue, the maximum loan will be based on the discounted purchase price. The valuer must be aware of any incentive and refer to this in the valuation report.
Interest
Interest calculated on a daily basis.
Buy to Let specific criteria
- Rental income cover requirements can be found by using the Buy to Let rental income calculator
- Monthly rental income can be greater or equal to 125% of the monthly mortgage payment, calculated on an interest only basis at BBR+0.50% (or payrate where applicable).
- A £3,000,000 lending limit applies to all Buy To Let borrowing across the Retail Division of Lloyds Banking Group (The Retail Division of Lloyds Banking Group consists of Bank of Scotland, Birmingham Midshires, C&G, TMB, Halifax, Intelligent Finance, Lloyds TSB, Lloyds TSB Scotland and Scottish Widows Bank).
- A maximum of 9 properties applies to all Buy To Let lending across the Retail Division of Lloyds Banking Group, of which a maximum of 3 properties can be on House 2 House lending (The Retail Division of Lloyds Banking Group consists of Bank of Scotland, Birmingham Midshires, C&G, TMB, Halifax, Intelligent Finance, Lloyds TSB, Lloyds TSB Scotland and Scottish Widows Bank).
- Maximum lending on each individual Buy to Let 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 or to a company on a corporate let. The maximum term is 12 months. Our consent is not required to renew the tenancy. The maximum number of occupiers is 5 who must all be party to the agreement. It is the landlord's 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). The maximum number of bedrooms allowed for a BTL property is 5. Valuers will consider how many rooms are likely to be used for bedroom accommodation. Where it is deemed that more than 5 rooms are likely to be used as bedrooms, we reserve the right to decline the application on that basis. This may result in the full valuation fee being non refundable.
- Where the property is not to be let immediately, the loan will be calculated on earned income, 3.25 + 1 or 2.75 joint incomes. All other criteria must be met.
- Student lets, holiday lets and tenants claiming housing benefit, rent rebate or rent allowance are not acceptable. Multiple tenancies (where each tenant signs a separate agreement and/or has separate facilities) are not acceptable.
- If the property is in Scotland the landlord must register with the relevant Local Authority.
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All our products are SUBJECT TO AVAILABILITY and can be withdrawn at any time.
A product is only available for further borrowing if it states this in the features box.
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