Compare Criteria

BM Solutions

Mortgage Type

Buy To Let

Property Value (min)

£50,000

Advance (min)

£25,001

Advance (max)

£1,000,000 to 75% LTV

Term (Max)

40 years

Minimum Age

25

Maximum Age

80

Family Cash Gift Deposit

Yes - Must be evidenced

Family Gift of Equity Deposit

No

Income (min)

No minimum income
Will consider affordability using personal income for applicants
Evidence must be retained of income and source of deposit for all applications
You must ensure that you ask for and retain evidence of personal income and deposits for applicants.
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5 year stress rate of 4.5% is available for customers with a qualifying credit score only and subject to a minimum income of £30,000 per application. Customers who have their application accepted but do not meet one or both of the qualifying criteria will revert to the original stress rate of 5.25%.
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For IT contractors on any income and other contractors whose income is more than £500 per day or £75,000 per year, BM accept the gross value of the contract as evidence of income.
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This applies to all Buy to Let and Let to Buy applications whether client is employed, self-employed, or operating as an umbrella company. All apps must have:
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12 months or more continuous employment in their current contract with 6 months of the contract remaining, or 2 years continuous service in the same type of employment (within the last 2 years). Please key the following details on the Point of Sale (POS) system:
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Employment status as ‘Employed’
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Type of employment as ‘Fixed, short term or rolling contract’
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Occupation type as ‘Professional’
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Job title as either ‘IT Contractor’ or ‘High Value Contractor’
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Income as the gross value of the contract. If the contract isn’t available, please follow the existing process for verifying income, including keying employment status as ‘Self-employed’ and using SA302s where appropriate.
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Evidence of the contract value and duration for all cases and only submit if income verification is requested. When submitting documentation, the following information should be provided:
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Full value of contract or rate of pay and contracted hours / days
Customer name and / or their company names, and evidence of ownership
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Name of the company the applicant is contracted to, if applicable
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Start and end date of the contract
Customer signature / electronic signature.
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For non-IT contractors earning less than £500 per day or £75,000 per year, the existing policy applies as follows:
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If the customer pays their own tax contributions they should be treated as self-employed.
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If tax is paid by the company they work for, the customer can be treated as employed as long as they can confirm:

12 months or more continuous employment with their current employer, with six months of the contract remaining, or
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Two years continuous service (for the last two years as at the date of application) in the same type of employment.
£25,000 - will consider non-earned income (UK based) including benefits, maintenance, investment and Trust income. Case

Restrictions

5 allowed to £3,000,000 across ALL LBG lenders (Lloyds Banking Group)
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Freehold flats are unacceptable mortgage security in most circumstances.

Where the flat is within a building of no more than 4 units it may be acceptable subject to the following requirements:

Freehold – acceptable subject to:

*The applicant must be the sole freeholder/landlord of the other flats which must be held on a long lease (70 years or more)
*Our mortgage must be registered on the freehold title

*Leasehold and the applicant owns the freehold of the building – acceptable subject to:

*The applicant must be the sole freeholder/landlord of the other flats which must be held on a long lease (70 years or more)

BM mortgage must be registered on both the freehold and leasehold title and these must be in the same name

Leasehold and the applicant owns a share of the freehold (whether within a management company or not) – acceptable subject to:

*The other freehold owners must be unrelated to the
*BM mortgage must be registered on the leasehold title

Where the tenure is leasehold and the freehold is owned by a landlord or management company this is acceptable whether the applicant has a share in the management company or not.

The conveyancer/solicitor will ensure arrangements in connection with the Management Company are acceptable. BM mortgage must be registered on the leasehold title.

Please note - the three properties does NOT include a residential property.

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HMO
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Properties subject to Local Authority HMO licensing may be acceptable, subject to the valuer’s assessment of suitability based on the following requirements:

● Letting arrangements must be via a single tenancy agreement. Multiple-tenancy arrangements, i.e. where individual tenants agree separate tenancies with the landlord, are not acceptable

● 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, remain unacceptable

● Large properties, i.e. where there are more than five let-table rooms, in an area where letting arrangements are predominantly multiple-tenancy, remain unacceptable

Let to Buy (Turning Residential into Buy to Let)

LTB will only be available when the applicant is buying a Residential property
They will require evidence of the Residential property purchase for LTB mortgages.

Ex-Local Authority Properties

Houses and flats considered - Subject to valuers comments

Minimum years remaining on leasehold property

At least 70 years unexpired term at the time of application.

Minimum Ownership

6 months minimum ownership before remortgage can be considered. Will lend against OMV no restrictions on maximum advance.

Permanent rights to reside and remain

Yes

Ex-Patriates

No

New Builds

New Build flats and Houses accepted to 75% LTV

Credit Score

Yes

Rental Calculation

125-145% @ 5.5% (see lender calculator)

Historic CCJ’s & Defaults

CCJs Criteria (Unsatisfied or Satisfied)
1 or more CCJs registered in the last 2 years and the total value of CCJs is more than £100 - Decline
1 or more CCJs registered in the last 2 years and total value of CCJs is less than £100 - Accept
1 CCJ totaling more than £5000 in the last 6 years - Decline
2 or more CCJs registered in the last 6 years totaling more than £1000 - Decline
2 or more CCJs registered in the last 6 years totaling less than £1000 - Accept (as long as it also meets criteria point number one)

Default Criteria (Unsatisfied or Satisfied)
1 or more defaults registered in the last 2 years and the total value of defaults is more than £100 - Decline
1 or more defaults registered in the last 2 years and total value of defaults is less than £100 - Accept
1 default totaling more than £5000 in the last 6 years - Decline
2 or more defaults registered in the last 6 years totaling more than £1000 - Decline
2 or more defaults registered in the last 6 years totaling less than £1000 - Accept (as long as it also meets criteria point number one)

Mortgage/Rent Arrears:
No more than 1 missed payments in last 24 months

Unsecured Arrears:
No more than 2 missed payments in last 24 months

Repossession:
Not Allowed

Bankruptcy:
Discharged more than 6 years ago

IVAs:
Satisfied more than 6 years ago

Valuation Fees

Valuation fees paid direct to lender at the lender fee scale

Maximum number of applicants

4

Countries

Will lend in England, Scotland, Northern Ireland and Wales.

Access

Access to BM Solutions is direct to the lender with 3mc as your payment route

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements

– Maximum 75% LTV for the overall portfolio
– A minimum rental stress of 145% at 5.5%
– Minimum earned income of £30,000 to include taxable profit from property portfolio
– Maximum of 10 BTL mortgaged properties with other lenders

Portfolio Landlord Criteria

– Up to 3 BTL mortgages with the Retail Division of Lloyds Banking Group to an aggregate borrowing of £2m
– Maximum of 10 BTL mortgaged properties with other lenders

Additional Document Requirements

– Portfolio Schedule (lender customer profile form) – All cases
– Business Plan (lender customer profile form) – All cases
– Asset & Liability Statement (lender customer profile form) – All cases
– Cashflow Statement – Not required
* Lender will not accept client versions of the documents