BM Solutions Mortgages | Buy-to-Let Mortgage Advice

BM Solutions is an intermediary-focused buy-to-let mortgage lender offering mortgages for landlords purchasing, remortgaging or refinancing investment property.

Birmingham Midshires is a division of Bank of Scotland plc and forms part of Lloyds Banking Group.

At Kerr & Watson, we may consider BM Solutions for individual landlords, limited company investors, portfolio landlords and customers converting their existing home to a buy-to-let property through a let-to-buy mortgage.

BM Solutions has some useful criteria around rental affordability, top-slicing and property types, but it also has clear restrictions around portfolio size, limited company structures and more specialist landlord situations.

Could BM Solutions be the right buy-to-let lender for you?

BM Solutions can work well for a range of landlords, but its criteria will suit some property, ownership and affordability structures better than others.

At Kerr & Watson, we compare BM Solutions with other suitable buy-to-let lenders to help identify the mortgage most appropriate for your circumstances and property investment plans.

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BM Solutions at a glance

	BM Solutions
Residential owner-occupier mortgages	No
Buy-to-let mortgages	Yes
Let-to-buy mortgages	Yes
Personal-name BTL	Yes
Limited company BTL	Yes
SPVs	Accepted subject to criteria
Trading companies	No
Layered company structures	No
Portfolio landlords	Considered
Top-slicing	Available on qualifying personal-name applications
Limited company top-slicing	No
First-time landlords	Can be considered subject to wider criteria
HMOs/shared accommodation	Certain properties considered
New-build property	Considered
Flats	Considered
Ex-local authority property	Considered subject to valuation
Properties above commercial premises	Can be considered
Product transfers	Available for existing customers

Mortgage products and lending criteria can change, so we check BM Solutions’ current requirements before recommending an application.

Who are BM Solutions?

BM Solutions is the intermediary brand of Birmingham Midshires, which is a division of Bank of Scotland plc and part of Lloyds Banking Group.

Unlike a conventional residential mortgage lender, BM Solutions concentrates on the buy-to-let market.

Its mortgages are distributed through mortgage intermediaries, so landlords generally access its new mortgage products through a broker rather than applying directly for a new mortgage.

BM Solutions can be relevant for both straightforward landlords and some more involved cases, but its lending criteria are relatively structured compared with specialist lenders that manually underwrite a broader range of unusual circumstances.

When might we consider BM Solutions?

We may consider BM Solutions for circumstances including:

Buying a standard buy-to-let property.
Remortgaging an existing investment property.
Purchasing through a limited company SPV.
Converting an existing home onto a let-to-buy mortgage.
A portfolio landlord within BM Solutions’ portfolio limits.
A landlord whose rent does not quite meet the standard rental calculation but who may qualify for top-slicing.
Buying a new-build investment property.
Certain shared accommodation or smaller HMO arrangements.
Flats above or adjacent to commercial premises.
Ex-local authority flats.
Studio flats.
Properties with an annexe.

Whether BM Solutions is suitable will depend on the applicant, property, rental income, portfolio and ownership structure.

BM Solutions buy-to-let mortgages

Buy-to-let is BM Solutions’ core mortgage market.

The lender considers the expected rental income from the property when determining how much can be borrowed.

This is different from a residential mortgage, where borrowing is primarily based on the customer’s personal income and expenditure.

For a buy-to-let application, BM Solutions will normally assess whether the rent provides sufficient coverage against a stressed mortgage payment.

The rental calculation can vary according to factors such as the mortgage product, applicant’s tax position and type of transaction.

We therefore calculate the maximum borrowing available before recommending an application rather than assuming that a property’s rent will automatically support the required mortgage.

Does BM Solutions have a minimum income requirement?

For many standard buy-to-let applications, BM Solutions does not apply a blanket minimum personal income requirement.

That does not mean personal circumstances are irrelevant.

At least one applicant will generally need to have an established source of income, and additional income requirements can apply in areas such as portfolio landlord lending or where personal income is being used through top-slicing.

The applicant must also pass BM Solutions’ wider credit and underwriting requirements.

This distinction can make BM Solutions useful for landlords whose buy-to-let property is self-supporting but whose personal income would not meet a lender imposing a rigid minimum salary requirement.

BM Solutions top-slicing

BM Solutions can use top-slicing on certain personal-name buy-to-let applications.

Top-slicing allows personal disposable income to help support the mortgage where the property’s rent falls slightly short of the lender’s standard rental calculation.

For example, a higher-income landlord might have a property with a strong rental yield that narrowly misses the standard stress test.

Rather than declining the application purely because of that shortfall, BM Solutions may be able to consider the landlord’s personal financial position.

However, top-slicing is not available across every part of BM Solutions’ range.

It is not currently available for:

Limited company applications.
Portfolio landlord applications.
Let-to-buy applications.

There are also minimum personal-income and rental-coverage requirements.

This makes it particularly important to establish whether the customer qualifies for top-slicing before relying on it as part of the mortgage strategy.

BM Solutions limited company buy-to-let mortgages

BM Solutions now offers buy-to-let mortgages to qualifying limited companies.

However, its company criteria are considerably narrower than specialist lenders that accept complex corporate structures.

BM Solutions primarily accepts Special Purpose Vehicles established specifically for property activity and registered under its permitted property-related SIC codes.

The company must be registered at Companies House before an application is submitted.

Who needs to be involved in the limited company application?

BM Solutions allows a limited number of directors and significant shareholders within the borrowing company.

Directors and shareholders meeting the lender’s definition will be assessed as part of the application and personal guarantees are required.

Independent legal advice is also required in relation to those guarantees.

This means the personal circumstances of the people behind the SPV remain important even though the mortgage itself is being taken in a company name.

Company structures BM Solutions does not accept

BM Solutions does not generally accept:

Trading companies.
Limited liability partnerships.
Partnerships.
Layered company structures.

An SPV owned by another limited company would therefore require a different lender.

Likewise, a property investor wanting to borrow directly through their existing trading business may need a lender with broader limited-company criteria.

This is a good example of why simply stating that a lender offers “limited company buy-to-let” does not tell the whole story.

Deposits for limited company mortgages

Director’s loans can be used as a source of deposit for qualifying BM Solutions limited company applications.

However, not every form of company funding is acceptable.

For example, BM Solutions does not currently accept intercompany loans as the deposit source.

If the investment structure involves another business providing the deposit or there are several companies within the wider group, we would normally compare BM Solutions with lenders that specifically accommodate layered or intercompany arrangements.

BM Solutions portfolio landlord mortgages

BM Solutions can consider portfolio landlords.

For BM Solutions, a customer generally enters its portfolio-landlord assessment when the applicants collectively have four or more mortgaged buy-to-let properties, including the new transaction.

The lender then considers the overall portfolio rather than assessing only the property being purchased or remortgaged.

Information required can include:

Property addresses.
Current property values.
Outstanding mortgage balances.
Monthly rents.
Purchase details.
Whether each property is mortgaged.
Whether properties are held personally or through companies.

The overall portfolio must meet BM Solutions’ rental coverage and loan-to-value requirements.

BM Solutions and larger property portfolios

BM Solutions also has a limit on the total number of mortgaged buy-to-let properties that can be held across relevant Lloyds Banking Group brands.

This is important because a landlord may not have all of their mortgages with BM Solutions itself but could still reach the lender’s exposure limit through mortgages held elsewhere within Lloyds Banking Group.

For larger professional landlords, this is one of the first things we would establish before considering BM Solutions.

A landlord with a portfolio exceeding the lender’s maximum would normally need an alternative portfolio lender.

BM Solutions let-to-buy mortgages

BM Solutions also provides let-to-buy mortgages.

Let-to-buy normally involves keeping your current residential property, converting it to a rental property and buying a new home to live in.

For example:

You own your current home but want to move rather than sell it.

Instead, you remortgage the existing property onto a buy-to-let basis, rent it to tenants and arrange a separate residential mortgage for your new home.

BM Solutions can consider this type of transaction, but the let-to-buy application needs to be connected to an onward residential purchase.

The two transactions therefore need to be planned together.

BM Solutions first-time landlords

BM Solutions can consider some applicants buying their first investment property.

However, its criteria around existing property ownership need to be checked carefully.

Where more than one person is applying, the property ownership background of the applicants can affect whether the case is acceptable.

This differs from specialist lenders that are prepared to lend to customers who have never owned any property before.

We therefore check the complete ownership history before recommending BM Solutions to a first-time landlord.

BM Solutions HMO mortgages

BM Solutions can consider certain properties occupied by unrelated tenants, but its HMO appetite is more limited than specialist HMO lenders.

A property can potentially be accepted where a relatively small number of unrelated tenants occupy the property under one tenancy agreement and the property otherwise meets standard lending requirements.

This can be useful for shared accommodation that falls within BM Solutions’ criteria.

However, a larger licensed HMO with multiple individual tenancy agreements, many bedrooms or a more specialist configuration would normally require a specialist HMO lender.

BM Solutions and studio flats

BM Solutions can consider studio flats and does not currently impose a blanket minimum floor-area requirement.

That can be useful because some lenders have strict minimum internal-size requirements for studio apartments.

The valuer will still need to consider the property suitable mortgage security and reasonably saleable.

A very small or unusual studio could therefore still be declined on valuation grounds even where there is no explicit minimum square-footage rule.

Flats above or next to commercial property

BM Solutions can also consider certain flats situated above or adjacent to commercial premises.

The type of commercial activity is important because some businesses can affect:

Noise.
Odours.
Opening hours.
Insurance.
Saleability.
Mortgage demand.

The residential property should also have suitable independent access and there should not be an inappropriate connection between the borrower and the neighbouring commercial premises.

The final decision will normally be influenced by the valuer’s comments.

Ex-local authority flats

BM Solutions can consider ex-local authority property, including some flats in blocks that other lenders may approach cautiously.

Factors such as:

Number of storeys.
Deck or balcony access.
Availability of lifts.
Construction.
Private ownership levels.
General condition of the block.
Marketability.

may all be relevant.

BM Solutions does not simply decline every ex-local authority flat because of one of these characteristics, but the valuation and saleability of the property remain central to the decision.

BM Solutions and non-standard construction

Some non-standard construction properties can also be considered.

Rather than every alternative construction method being automatically acceptable, the property will normally be assessed on its individual merits and the valuer’s comments.

Where a property uses an unusual construction method, we would generally check the lender’s appetite before making a full application.

BM Solutions and annexes

A property containing an annexe can also be considered in some circumstances.

Generally, the annexe needs to remain part of the main title rather than being separately legally divided.

The lender will also consider how the annexe is occupied and whether it changes the nature or future marketability of the property.

A separately let self-contained unit can therefore be viewed differently from accommodation used as part of the main property.

BM Solutions new-build buy-to-let mortgages

BM Solutions can lend on new-build investment property, subject to valuation and its current loan-to-value criteria.

New-build buy-to-let applications can require additional checks around:

Developer incentives.
Purchase price.
Valuation.
Concentration of investor ownership.
Property type.
Lease terms.

Any builder incentives should be disclosed because they can affect the value used when calculating the mortgage.

BM Solutions and rental valuations

The rent used for mortgage affordability does not always have to be identical to the rent currently being received.

Where a property is already let, the valuer will provide an assessment of achievable market rent.

In some circumstances BM Solutions may be able to take account of the passing rent even where it differs from the valuer’s figure, subject to the lender’s parameters.

This can be relevant where a property has a genuine established tenancy at a rent slightly above the valuer’s market-rent assessment.

BM Solutions product transfers

BM Solutions also offers product transfers for existing borrowers whose current mortgage deal is coming to an end.

A product transfer involves selecting a new mortgage product with the same lender rather than remortgaging to a different lender.

Remaining with BM Solutions can sometimes be appropriate, particularly where:

The existing lender offers a competitive product.
The landlord does not want a full remortgage.
The property’s circumstances have changed.
Affordability or criteria could make switching lender more difficult.

However, staying with BM Solutions should still be compared against the wider mortgage market.

The fact that a product transfer is easier does not automatically mean it provides the most appropriate overall outcome.

Our experience with BM Solutions

We have arranged BM Solutions mortgages for buy-to-let landlords, including helping existing borrowers review and secure new products as their current mortgage deals approached expiry.

Our experience includes landlords with individual buy-to-let properties as well as customers managing several BM Solutions mortgages, where we have compared the available product-transfer options and considered whether remaining with BM Solutions or remortgaging elsewhere provided the more appropriate outcome.

BM Solutions buy-to-let product transfer in Farnborough

We helped experienced landlords in Farnborough who had three existing buy-to-let mortgages with BM Solutions approaching the end of their fixed-rate periods.

After reviewing their requirements and the alternatives available, the clients chose to remain with BM Solutions and complete product transfers across all three properties, avoiding the additional underwriting, valuation and legal work that would normally be involved in remortgaging to another lender.

Farnborough BM Solutions product transfer case study

BM Solutions product transfer with only 10 days remaining

In another case, a landlord’s interest-only buy-to-let mortgage was only 10 days away from moving onto the lender’s variable rate.

With limited time remaining and a relatively short mortgage term, moving to another lender was not a practical option, so we reviewed the products available from BM Solutions and arranged a new fixed-rate product before the existing deal expired.

BM Solutions product transfer case study

When might BM Solutions not be the right lender?

BM Solutions has a strong mainstream buy-to-let proposition, but there are situations where another lender may be more appropriate.

Examples include:

You need an owner-occupied residential mortgage.
You have a portfolio beyond BM Solutions’ maximum exposure.
You want to borrow through a trading company.
Your SPV has a layered corporate structure.
Your limited company requires top-slicing.
You need to use an intercompany loan as the deposit.
You are buying a larger or more specialist HMO.
The property is not currently habitable or lettable.
Your credit profile does not meet BM Solutions’ scoring requirements.
Another lender produces a better rental calculation.
Another lender offers a more suitable overall mortgage cost.

This is why we compare the complete transaction rather than choosing a lender based purely on headline rates.

What we check before recommending BM Solutions

Before recommending BM Solutions, we consider:

The expected rental income.
Required mortgage amount.
Personal or limited-company ownership.
Existing property ownership.
Wider buy-to-let portfolio.
Personal income where relevant.
Credit profile.
Property type.
Proposed tenancy.
Loan-to-value.
Fees and mortgage product costs.
Whether top-slicing is required.

For company applications, we also check the SPV’s SIC codes, directors, shareholders, ownership structure and source of deposit.

This helps establish whether BM Solutions genuinely fits the case before an application is made.

Do you have to use BM Solutions?

No.

Kerr & Watson is an independent, whole-of-market mortgage brokerage, so we can compare BM Solutions against other suitable buy-to-let lenders.

For a straightforward buy-to-let, BM Solutions may compete with other mainstream landlord lenders.

For more complicated cases involving larger portfolios, HMOs, layered companies, trading companies or unusual properties, specialist lenders may provide greater flexibility.

Our role is to identify which lender and mortgage provide the most suitable overall solution for your circumstances.

Speak to a mortgage adviser about BM Solutions

If you are considering BM Solutions for a buy-to-let, limited company mortgage, portfolio property or let-to-buy transaction, we can review your circumstances before an application is made.

We can assess the property, rental income, ownership structure and wider portfolio before comparing BM Solutions with other suitable buy-to-let lenders.

Speak to an Adviser

Lender criteria, affordability calculations, product availability and lending terms can change. The information on this page is intended as a general guide and should not be relied upon as confirmation that a lender will accept a particular application or that a particular mortgage or finance product will be suitable for you.

The information on this page does not constitute personalised mortgage advice or a recommendation. The regulatory status of a mortgage or loan depends on the type of transaction and your circumstances. Many buy-to-let and commercial mortgages, and some bridging loans, are not regulated by the Financial Conduct Authority. Your home or other property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.

Written by Daniel Watson, CeMAP, DipMAP
Published: 30 August 2024 | Last updated: 14 September 2026

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  The team at Kerr & Watson were brilliant end to end. Daniel explained everything clearly, was always available to answer questions and helped us secure a great mortgage rate. The mortgage broking service they offer is worth every penny and I'd not hesitate to use them again. Thank you!
  
 
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Frequently Asked Questions About BM Solutions

▸ ▾ Who are BM Solutions?

BM Solutions are buy-to-let mortgage lender and part of Lloyds Banking Group. They mainly used by landlords who are buying, remortgaging or refinancing rental property.

BM Solutions may be suitable for first-time landlords, experienced landlords, portfolio landlords and, in some cases, limited company buy-to-let applicants. The right lender will depend on your property, rental income, deposit, personal income and wider circumstances.

▸ ▾ Do I need a mortgage broker to apply to BM Solutions?

BM Solutions works with mortgage brokers and intermediaries, so landlords will usually apply through a broker rather than directly with the lender.

Using a broker can be helpful because buy-to-let lending is criteria-driven. Kerr & Watson can check whether your case fits BM Solutions, compare other buy-to-let lenders and help package the application correctly before submission.

▸ ▾ Can Kerr & Watson help me apply to BM Solutions?

Yes, Kerr & Watson can help with BM Solutions buy-to-let mortgage applications. We can review your rental property, deposit, expected rent, personal income, portfolio position and mortgage goals before deciding whether BM Solutions is the right lender to approach.

If BM Solutions is suitable, we can help prepare and submit the application. If another buy-to-let lender is a better fit, we will explain your options clearly.

▸ ▾ Does BM Solutions offer buy-to-let mortgages?

Yes, BM Solutions is known for buy-to-let mortgages. It may be considered by landlords purchasing a rental property, remortgaging an existing buy-to-let or reviewing their current mortgage deal.

Buy-to-let mortgages are assessed differently from residential mortgages. The lender will usually look at the rental income, property value, landlord experience, deposit, loan amount and overall affordability.

▸ ▾ Can first-time landlords use BM Solutions?

BM Solutions may be an option for first-time landlords, depending on the application and the lender’s criteria at the time. A first-time landlord is someone buying their first rental property.

Lenders may look closely at your income, deposit, property type, expected rent and overall financial position. Getting advice before applying can help you understand whether BM Solutions is suitable or whether another lender may be a better option.

▸ ▾ Does BM Solutions offer limited company buy-to-let mortgages?

BM Solutions may consider limited company buy-to-let mortgages, subject to the lender’s criteria and product availability. This can be relevant for landlords who own or plan to buy rental property through a limited company or special purpose vehicle.

Limited company buy-to-let applications can be more detailed than personal buy-to-let cases. Kerr & Watson can help review the company structure, property, rental income and lender requirements before an application is submitted.

▸ ▾ How much can I borrow with BM Solutions?

How much you can borrow with BM Solutions will usually depend on the property value, rental income, deposit, loan-to-value, interest rate stress testing and your wider circumstances.

Buy-to-let affordability is not assessed in the same way as a standard residential mortgage. The rent often plays a major role, so Kerr & Watson can check the rental calculation and compare BM Solutions against other lenders to see what may be possible.

▸ ▾ What deposit do I need for a BM Solutions buy-to-let mortgage?

The deposit needed for a BM Solutions buy-to-let mortgage depends on the product, property type, rental income and your overall circumstances. Buy-to-let mortgages usually require a larger deposit than standard residential mortgages.

Before applying, it is important to check whether your deposit and rental income meet the lender’s requirements. If BM Solutions is not the most suitable option, another buy-to-let lender may be a better fit.

▸ ▾ Can I remortgage to BM Solutions?

Yes, BM Solutions may be an option if you want to remortgage an existing buy-to-let property. This could be to secure a new rate, raise capital, move from another lender or review your options before your current deal ends.

A buy-to-let remortgage should be reviewed carefully. Interest rates, fees, rental stress testing, property value, early repayment charges and future plans should all be considered before deciding whether BM Solutions is right for you.

▸ ▾ Is BM Solutions the best buy-to-let lender for me?

BM Solutions may be a suitable buy-to-let lender for some landlords, but it will not be the best choice for everyone. The right lender depends on your property, rental income, deposit, tax position, portfolio size, ownership structure and long-term plans.

Kerr & Watson can compare BM Solutions with other buy-to-let lenders and explain which option is most suitable. This can help you avoid applying to the wrong lender and give you a clearer route forward.

Common Mortgage Lender Questions

▸ ▾ How do I know which mortgage lender is right for me?

The right mortgage lender will depend on your income, deposit, credit history, property type, borrowing amount and long-term plans. Some lenders are better suited to straightforward residential mortgages, while others specialise in buy-to-let, complex income, adverse credit, commercial property or larger loans. A mortgage adviser can compare lenders and help identify which option may be most suitable for your circumstances.

▸ ▾ Do all mortgage lenders use the same criteria?

No. Every mortgage lender has its own lending criteria, affordability model, credit scoring system, property requirements and risk appetite. This means one lender may decline an application that another lender is comfortable considering. Lender selection is an important part of the mortgage process.

▸ ▾ Why use a mortgage broker instead of applying directly to a lender?

A mortgage broker can help compare lenders, check criteria before you apply and explain which options may be suitable for your circumstances. This can be especially useful if you are self-employed, have complex income, need a buy-to-let mortgage, have previous credit issues or are unsure which lender is likely to accept your application.

▸ ▾ Can a whole-of-market mortgage broker access more lenders?

A whole-of-market mortgage broker can review a wide range of lenders and products, including high street banks, building societies, specialist lenders and intermediary-only lenders. This can give you a broader view of your options than approaching one lender directly.

▸ ▾ What is an intermediary-only mortgage lender?

An intermediary-only lender is a lender that usually accepts applications through mortgage brokers rather than directly from customers. These lenders may offer products or criteria that are not available by applying directly online or through a branch. A mortgage broker can check whether an intermediary-only lender may be suitable for your case.

▸ ▾ Does the lowest mortgage rate always mean the best lender?

Not always. The lowest rate may look attractive, but it is not automatically the best option. You also need to consider lender fees, affordability, criteria, product terms, early repayment charges, valuation requirements, service levels and whether the lender is likely to approve your application.

▸ ▾ Do mortgage lenders calculate affordability differently?

Yes. Mortgage lenders use different affordability calculators and assumptions. They may treat income, bonuses, commission, overtime, self-employed income, pension income, benefits, debts and childcare costs differently. This means the amount you can borrow may vary significantly from one lender to another.

▸ ▾ Can a mortgage lender decline me even if I can afford the mortgage?

Yes. Mortgage lenders do not assess affordability alone. They may also review your credit history, employment type, income structure, deposit source, property type, loan-to-value, age, commitments and overall risk profile. Even if the monthly payment seems affordable, a lender may still decline the case if it does not meet their criteria.

▸ ▾ If one lender declines me, can another lender still approve me?

Yes. A decline from one lender does not necessarily mean you cannot get a mortgage. Lenders assess applications differently, so another lender may take a more suitable view of your income, credit history, property or deposit. It is important to understand why the application was declined before approaching another lender.

▸ ▾ Do lenders treat self-employed income differently?

Yes. Some lenders use the latest year’s income, while others average the last two years or assess salary and dividends for limited company directors. Some lenders may also consider retained profit, contractor income or more complex trading structures. Choosing the right lender can make a significant difference for self-employed applicants.

▸ ▾ Do mortgage lenders accept bad credit?

Some lenders may consider applicants with bad credit, depending on the type, age and severity of the credit issue. Missed payments, defaults, CCJs, debt management plans, IVAs and previous arrears are all assessed differently by different lenders. A specialist lender may be more suitable if you have historic credit problems.

▸ ▾ Can Kerr & Watson help me choose between mortgage lenders?

Yes. Kerr & Watson can review your circumstances, compare suitable lenders and explain which options may be available. We can help with residential mortgages, buy-to-let mortgages, specialist lending, complex income, adverse credit, bridging, commercial finance and later life lending, depending on your needs.