In the competitive UK land market, BM Solutions has consistently stood out. With the evolution of the UK buy-to-let market, BM Solutions brings another pioneering strategy. Known as “top slicing”, this new method is enhancing the buy-to-let applications process, especially for landlords in the UK.
The Basics: What is “Top Slicing” in BTL Applications?
In BM Solutions’ buy-to-let applications, “top slicing” stands out. This concept permits buy-to-let borrowers to use their personal income, be it earned income or from self-employment, to supplement any low rental income when securing a mortgage. This is an advantage for those struggling landlords whose rental income might not meet the minimum income requirement but have sufficient personal income to bridge that gap.
The Importance of Rental Income in Buy-to-Let
Traditionally, the buy-to-let market heavily relied on the potential rental income. This income determines the affordability and suitability of a landlord for a mortgage. However, with fluctuations in rental market conditions, sometimes this income alone may not be sufficient.
Augmenting with Personal Income
BM Solutions’ “top slicing” stands out in buy-to-let applications as it allows borrowers to use their personal income. This supplements any shortfall in rental income when securing a mortgage. This not only broadens the opportunities for potential landlords but also adds a layer of security for the lender.
The Advantages of BM Solutions’ Top Slicing Initiative
BM Solutions’ “top slicing” strategy could be the lifeline that benefits landlords with low rental income in the UK buy-to-let market have been waiting for. Here’s why:
Enhancing Mortgage Affordability
Traditional buy-to-let mortgages from BM Solutions primarily considered potential rental income. With top slicing, BM Solutions expands borrowing potential by also considering a landlord’s personal income, catering to let-to-buy customers as well. This approach can often reduce the required lending amount and provide reduced-cost solutions.
Tailored Solutions for Diverse Income Streams
Not every buy-to-let property owner in the UK land market has a consistent rental income stream. Whether you’re a portfolio landlord, someone with just a few properties, or even let-to-buy customers, the top-slicing approach caters to all. It’s particularly beneficial for those with self-employment income or those who have properties that stand below the current stress tests.
Maintaining Robust Controls
BM Solutions, a leading brand under Lloyds Banking Group, ensures that its buy-to-let offerings, including top slicing, adhere to rigorous standards. They prioritise maintaining robust controls during the affordability assessment, ensuring that buy-to-let properties stand the test of time and market fluctuations.
Backed by the Prestige of Lloyds Banking Group
One of the significant advantages is the robust backing of the Lloyds Banking Group, a cornerstone in the UK banking industry. Housing BM Solutions under its expansive umbrella ensures trust and reliability. BM Solutions, with its innovative approach, has not only established a unique position in the buy-to-let market but also exemplifies the unparalleled standards and reputation of Lloyds.
The Role of a Mortgage Broker: YesCanDo Money’s Expertise
Navigating the intricate UK buy-to-let market can be daunting, more so when BM Solutions changes the game. YesCanDo Money, an experienced mortgage broker, has been instrumental in helping buy-to-let borrowers, especially portfolio landlords with a few properties or even fewer than four properties, make sense of these shifts.
“BM Solutions’ new income offer with ‘top slicing’ is a really big deal for the buy-to-let market. It opens up a ton of new possibilities for landlords and borrowers. The way they’ve structured it is super innovative and has the potential to completely change how things work. At YesCanDo Money, we’re excited about developments like this that give our clients more options. As a major player in the buy to let market space, we’ll make sure to help everyone understand how to take full advantage of game-changing products like this.” – Steve Roberts
What does top-slicing mean in mortgage?
Top-slicing in mortgages refers to allowing borrowers to use their personal income to supplement potential shortfalls in rental income, increasing their chances of loan approval.
What is the stress rate for BM solutions buy-to-let?
The stress rate for BM Solutions buy-to-let can vary based on various factors, including market conditions and individual circumstances. It's essential to consult directly with BM Solutions or a broker for the latest rates.
Is a buy-to-let regulated by Birmingham Midshires?
Yes, buy-to-let mortgages from Birmingham Midshires, operating under BM Solutions, are regulated, ensuring transparency and adherence to industry standards.
Is BM Solutions part of Halifax?
Yes, BM Solutions is a brand under the Birmingham Midshires division, which itself is a part of Lloyds Banking Group, the same group that owns Halifax.
Can you remortgage with Birmingham Midshires?
Yes, Birmingham Midshires (operating as BM Solutions for buy-to-let) offers remortgaging options for eligible clients, ensuring flexible financial solutions.