The chances are you may be an existing customer of BM Solutions (Birmingham Midshires Mortgages) and they have told you that they are unable to help you with any buy to let mortgage advice. You may well have been told that you need to speak to an independent mortgage broker. If this is the case, read on.
BM Solutions do not have its own mortgage advisers and therefore you will need to find a Mortgage Broker that can talk to BM Solutions on your behalf. This applies to existing BM Solutions customers and also to new customers.
Are there advantages of using a BM Solutions mortgage broker?
You may be an existing customer of BM Solutions (Birmingham Midshires mortgages) and your fixed or tracker rates product is coming to an end. As a customer with an existing Birmingham Midshires mortgage, it may be in your best interest to stay with BM Solutions mortgages in which case a broker will advise you of this and then be able to talk and correspond with BM Solutions on any buy-to-let mortgage you have on your behalf. If you require a new bm solutions product then speak to one of our BM Solution specialist buy to let mortgage advisors.
An independent no-fee mortgage broker will also be able to search the whole mortgage market and advise existing customers the benefit of staying with BM Solutions mortgages and choosing the best BM Solutions mortgage product transfer products.
If you both agree that is best for you to stay with BM Solutions the mortgage broker or mortgage adviser will be able to do this on your behalf. The broker will complete the Birmingham Midshires mortgage application for you and see the whole mortgage application and product transfer through to completion.
It may be that you are about to purchase a property and want a BM Solutions mortgage product as they are offering good rates and mortgage deals at that time. Once again you will need the help of a mortgage advisor to get the Birmingham Midshires mortgage application underway.
I have an existing BM solutions mortgage and they won’t speak to me
We understand it’s frustrating! You are an existing customer of Birmingham Midshires, you have a mortgage with Birmingham Midshires and they will not give you any information on further borrowing or mortgage deals they have available even though you are a client of theirs!
When you call BM solutions mortgages they will inform you they are unable to give existing customers any mortgage advice. You will be told you need to speak to a mortgage broker for independent mortgage advice. This is where we can help you.
YesCanDo is a BM Solutions broker and we will have access to your Birmingham Midshires account. Our mortgage team will be able to help you with every Birmingham Midshires mortgage deal that is open to you. Our advisors will be able to book the mortgage rates you require and then process your Birmingham Midshires Mortgage application. The best part is YesCanDo will not charge you a penny for there services as they get paid by Birmingham Midshires.
Birmingham Midshires further advances
While you remortgage with Birmingham Midshires you may want to raise additional borrowing on your existing BM mortgage. The best and most cost-efficient time to arrange a further advance is when you remortgage your buy-to-let mortgage with Birmingham Midshires. Talk to one of our experienced Birmingham Midshires advisers who will be able to help you with any further advance applications.
Birmingham Midshires Product Transfer
You may have an existing mortgage with Birmingham Midshires however do not want any further advances and just want a new BM solutions mortgage interest rate. This is known as a mortgage product transfer. Basically, a product transfer is a ‘like for like BM Solutions buy to let mortgage with a new product. At YesCanDo we can help you with any bm solutions product transfer application.
How do I find a BM Solutions broker that does not charge a fee?
Often the best way is to get a recommendation from a friend or family. If this doesn’t work why not ask your friends on Facebook? Another option is google. How to find a broker that does not charge a fee? It is definitely investing a little time in finding a no-fee mortgage broker as it will save you a lot of money.
What are the advantages of finding a whole of market mortgage broker?
There are definite advantages to finding a whole of market mortgage broker. Firstly if a broker is going to search for a lender offering competitive interest rates it makes sense that they search the whole market and that way they will find you the very best rates and lowest monthly payments.
Secondly, different lenders charge different fees including valuation and arrangement fees. If the broker searches the whole mortgage market they will be able to get you the lowest fees possible.
The third area to consider is a very important area. Not all banks and building societies have the same lending criteria. The lending criteria will vary vastly on what type of construction they will lend on. Minimum amounts of deposit needed. The maximum number of properties owned by you in your property portfolio and your length of time in employment.
The reason lending criteria is of so much importance is that your property or personal situation may not be acceptable with one lender but may be acceptable with a different lender. This is where a mortgage broker can be of massive assistance as they will be able to search the whole mortgage market to match your very own criteria to a lender that will accept you.
BM Solutions full rental income calculator
In late 2022 Economists are not liking prime minister Liz Truss’s mini-budget and this has caused buy to let interest rates to increase rapidly. This can cause major issues when it comes to remortgaging and landlords are catching a rental yield ‘cold’.
It has been our observation that many landlords have not increased the rents on their buy-to-let properties over the last couple of years and this can cause issues getting a Birmingham Midshires remortgage. This can be because the interest cover ratio is not sufficient. In layman’s terms, the rent doesn’t cover the mortgage.
BM Solutions full rental income calculations
Below you can calculate the maximum amount of capital you can borrow to purchase your property.
Limits apply to all BM Solutions Buy to Let products:
- A maximum of 75% Loan-To-Value for loans from £25,001 to £1,000,000.
- The maximum loan on a Buy to Let mortgage is £1,000,000.
- For Portfolio Landlord Applications, additional criteria will apply.
Use both of the below tables to choose the correct “stress rate” and rental cover ratio (RCR) to calculate your maximum available borrowing.
|Application type||Rental Cover Ratio (RCR)|
|All applicants are basic rate tax payers||125%|
|One or more applicants are higher/additional rate tax payers (1)||145%|
|Product Term||Application requirements||Stress rate|
|Less than 5 years||None||6.5% or pay rate +2% whichever is higher (4)|
|5 year fixed||Joint income is under £55k||6.5% or pay rate +2% whichever is higher (4)|
|5 year fixed||Joint income is £55k or over (2)||6.5% or pay rate +1% whichever is higher (4)|
|Less than 5 years||Like for like remortgage (3) (max 60% LTV) One or more applicants are higher / additional rate tax payers (1)||6.5% or pay rate +1% whichever is higher (4)|
(1) Tax payers that are considered Higher/Additional are applicants whose overall income plus 80% share of their gross rental income for all the properties that the applicant will own when the completion exceeds £50,271 per annum or (£43,663 per annum in Scotland)
(2) atleast £55,000 or more joint income must be from all earned income. This includes Profit from both UK land and property, excluding the gross annual rental income.
(3) Like for like (£4£) remortgages are obtainable for any applications up to a 60% Loan-To-Value. One or more applicants must be a higher/additional rate tax payers and the borrowing must be the same amount (the addition of fees can be included).
(4) For payrate +1% or +2% is where there is more than one product we will use the highest interest rate.
If you are looking for further borrowing you should use 125% RCR if all applicants are basic rate tax payers
You should use 145% RCR if one or more applicants are higher/additional rate tax payers. The stress rate is 6.5% or pay rate +2% whichever is higher.
Insert your correct stress rate and RCR into the calculation below, ensuring you have used the correct pay rate +1% or 2% if applicable.
Annual rent ÷ Stress rate % ÷ RCR % = Max available loan including any products fees added.
If you are a portfolio landlord, additional criteria must be met for your total portfolio. The application property must achieve a minimum rental cover of 145% stress tested at 5.5% and must be no more than 75% Loan To Value. (A minimum joint income of £30,000 per annum).
Total portfolio annual rent ÷ total portfolio mortgage balance ÷ 5.5% x 100 = Portfolio RCR.
Total portfolio mortgage balance ÷ total portfolio property value = Portfolio LTV.
How do I know if a mortgage broker will find me the best rates?
Mortgage brokers use mortgage sourcing software to search the mortgage market. The most common software used is Mortgage Brain and Trigold. Make sure you are using a broker who searches the whole market. This way you will be ensuring that you are open to every mortgage available from every bank and every building society. This usually gives the broker over 14,0000 mortgages to choose from.
The broker will then use filters to whittle down the options for example they might search for mortgages offering free valuation surveys or may search for lenders offering free solicitors to carry out the conveyancing. Also, another important factor to take into consideration is the arrangement fees. Paying an arrangement fee may get you a lower interest rate, however, in the long term does this benefit you?
Most of the time it will benefit you to look at the cost of a mortgage over the term of your rate. So say you want a 2-year fixed-rate mortgage to get your broker or mortgage adviser to search for the best rate over the 2-year period. The software will then take everything into consideration including free incentives, rates, and arrangement fees, and will come up with the very top mortgage out of over 14,000 mortgages searched. You can ask the broker for evidence of the research produced by the mortgage sourcing software. This way you will have the peace of mind that you have the very best mortgage available open to you.
How much will it cost me to remortgage?
The first cost of remortgaging will be for a valuation survey. If you are remortgaging you may feel that you don’t need a survey as you already own the property however the new lender will want to make sure that they are willing to lend your money and that the property is of the correct value and is in good repair. Some lenders offer a free valuation as part of their remortgage incentive to attack you as a new customer.
The second cost when remortgaging will be to a conveyancer to carry out the legal work on transferring the mortgage from your old lender to your new lender. The solicitor will be making sure everything is legal so you are protected and they will also be working for your new lender to make sure they are also protected. Once again you will find that some lenders will offer this as a free incentive to attract you to them as a new customer.
The last cost to take into consideration is the arrangement fee. Although you may think as it sounds that this is for arranging the mortgage actually it is not! The arrangement fee is the cost of purchasing at a fixed or discounted rate. Although most lenders will offer you one interest rate with no fee, they will often offer a lower rate with an arrangement fee. Your mortgage adviser will be able to calculate if it will be of benefit to pay an arrangement fee to get a lower rate.
So the answer to the question of how much will it cost me to remortgage is it could you nothing or it could you a few thousand pounds. Get good financial advice from a mortgage adviser or broker and they will advise the best course of action for you.
Who are BM Solutions mortgages?
BM Solutions mortgages are the Buy to Let mortgage company of the Lloyds Banking Group.
Birmingham Midshires started in 1986 with the merger of the Birmingham and Bridgwater and the Midshires Building Societies. These societies started back as early as 1849.
In 1999, the Birmingham Midshires Building Society was taken over by the Halifax. The Halifax itself became a part of HBOS plc when it merged with the Bank of Scotland in 2001.
In 2008 HBOS plc was taken over by Lloyds Bank and is now part of the Lloyds Banking Group.
bm solutions for intermediaries Facts
- Portfolio lending to clients with 4 or more mortgaged Buy to Let properties including the new transaction is also available through Birmingham Midshires intermediaries
- You can have up to five Buy to Let properties that can be mortgaged with a £3 million lending limit across Lloyds Banking Group
- BM Solutions mortgages maximum Loan to Value is 75%
- Monthly rental income must cover 125% of the monthly mortgage payment
- At least one of the applicants must currently own a property in the UK. Inherited and gifted properties are acceptable according to BM solutions intermediaries
- BM for intermediaries is part of BM solutions used by mortgage brokers
- No minimum income requirement however at least one applicant must be in receipt of earned or pension income
- Available for first-time landlords
- Available for student lets and landlords with tenants in receipt of benefits
- 5 Star Award-winning service at the Financial Adviser Service Awards for 14 consecutive years
- BM solutions for intermediaries is the BM solutions company that mortgage brokers will use for both new and existing customers
What Interest rates do BM Solutions offer?
BM Solutions offer a good range of fixed and tracker buy-to-let rates including
- 2 year
- 3 year
- 5 year
Remortgaging with BM Solutions Summary
So don’t take it personally that if you call BM Solutions that they wouldn’t offer you any of their mortgage products or advise you of any options open to you. They are not treating you differently as this will be the case for everyone contacting them including existing customers.
Although a little annoying this may well end up being to your advantage. Find a whole of market, a no-fee mortgage broker who will search the whole mortgage market to get you the best interest rates and the lowest arrangement fees, Not only will you save money but they will also save you a lot of time filling in applications and chasing the mortgage through to completion.
Need us to help with your BM Solutions Mortgage?
Make contact us at YesCanDo Money. We have a team of friendly advisers who will be more than happy to help you with BM solutions mortgage products and then get a Birmingham Midshires mortgage decision in principle and along with this will provide lots of free mortgage advice. YesCanDo Money is a NO-FEE mortgage broker so it won’t cost you a penny. We are a family-run independent mortgage broker based in Hampshire that covers the whole of the UK.