BM Solutions BTL Product Transfer Rates 12th July 2021
Birmingham Midshires buy to let existing customers need to arrange a product transfer through specialist brokers like ourselves. The good news is that we can arrange a BM Product Transfer for you swiftly, easily, and free of charge.
Our BM Solutions product transfer service is provided with
- No Meetings
- No Paperwork
- No Fuss
- No Broker Fees
How our Birmingham Midshires buy to let existing customers mortgage Product Transfer Service works
We need the following information to arrange your BM Solution Buy to Let mortgage product transfer.
- Your mortgage account number (11 digits starts with a 2)
- The full postal address of the buy to let property
- Your full name(s) and contacts details
- Your home address
- Your date of birth
Once we have the above we can check with the lender your outstanding mortgage balance, lenders estimate of your property value and your product transfer options.
You can then decide your preference. We then request the new rate from the BM on your behalf and you have a single Authority Form to sign.
BM Solutions Product Transfer Rates 75% LTV
The cost of inaction
As a Birmingham Midshires buy to let existing customer you will need assistance when your current buy to let rate ends to avoid moving onto the BM Solutions revert rate of 4.44%. If you have borrowings of just £150,000 you are wasting up to £142 a month by not moving off of the BM revert rate. That’s like paying for a Gas Safety Certificate every month.
BM Solutions Let to Buy Product Transfer Rates 60% LTV
BM Solutions Let to Buy Product Transfer Rates 75% LTV
BM Solutions product transfers and early repayment charges
We can secure a new BM Solutions product transfer rate for you within 90 days of the expiry date of your current product.
We can start the new BM Solutions product transfer rate for you within 60 days of expiry of the current product -without incurring an early redemption charge.
Should you wish to pay off a lump sum you can pay off up to 10% of your mortgage anniversary balance each year without penalty.
If you wish to pay off more than this amount we can arrange for you to pay up to 40% of your anniversary balance in conjunction with a product transfer.
Balance on last anniversary of taking the mortgage £285,000
Current balance £285,000
Current product ends 31/12/2021
Early Redemption Charge 1%
We can secure a new rate from 1st October 2021 to start 1st November 2021
Ordinarily, you can overpay £28,500 without charges (anything above that is charged at £10 per £1,000)
However, as part of the product transfer process you can overpay by up to £114,000 (40%) without charge.
BM Solutions Buy to Let Redemption Penalties – 2 year products
|Year one||2% early redemption penalty|
|Year two||1% early redemption penalty|
Subject to change – Check your mortgage offer for details on your own mortgage contract
BM Solutions Buy to Let Redemption Penalties – 5 year products
|Year one||5% early redemption penalty|
|Year two||4% early redemption penalty|
|Year three||3% early redemption penalty|
|Year four||2% early redemption penalty|
|Year five||1% early redemption penalty|
Subject to change – Check your mortgage offer for details on your own mortgage contract
How do BM Solutions product transfer rates compare?
The rates available from Birmingham Midshires on product transfer are competitive, but they may be more favourable rates available elsewhere on the market.
Being whole of market brokers we can, if requested, run a comparison for you so that you can ensure you get the best deal possible.
Remember, if you decide to move to a new lender rather than taking a product transfer you will need to:
- Pass a credit score with the new lender
- Have the property valued
- Prove your rental income*
- Prove bank statements (with most lenders)
- Prove your earned income (with most lenders)
- Cover legal costs (although some lenders will pay these for you)
*Recent changes to rental calculations across the buy to let mortgage may mean that under current circumstances your rental income may not be sufficient to support your existing lending. This may stop you raising funding from a new lender, but does not affect your ability to request a product transfer
BM Solutions Further Advances
What if I want to raise additional funds?
Should you wish to raise extra funding against your property we can help you with this.
Further Advances are available from BM Solutions today at a rate of 2.58% with no product fee.
That extra funding can be raised in one of three ways.
- Via Birmingham Midshires – Further Advance
- From a second lender – Second Charge Lending
- From a new Lender – Through a full re-mortgage
We can help you decide the best options available to you and handle everything.
Remember, we are an online independent mortgage broker which means no meetings and no paperwork.
About Birmingham Midshires – BM Solutions
BM Solutions are the market leader in buy to let mortgages in the UK and are part of the Lloyds Banking Group. Below we outline some of underwriting considerations that make BM Solutions are so popular in the market and also underwriting issues you need to be aware of.
Underwriting – reasons to use BM Solutions
BM Solutions are happy with let to buy applications, consumer buy to let (properties previously occupied by the applicant on their family), and portfolio landlords.
BM Solutions can handle multiple applicants with up to 4 on each application.
Most buy to let mortgage products with Birmingham Midshires will offer a free legal service
Let to buy lending is available from BM Solutions but only when there is a related residential purchase. This means that typically the lender will want to see a copy of mortgage offer on the purchase or a letter from the solicitor confirming a mortgage free purchase.
These are acceptable to BM Solutions where there are a maximum of five unrelated tenants in a property that is suitable for residential accommodation.
Birmingham Midshires will consider remortgages on a property inherited within the last six months can be accepted but only once probate has been granted.
Minimum property value
BMS require a minimum property value purchase price (whichever is lower) to be £50,000
Buy to let products are normally portable, although let to buy products are not. If sale and purchase are not concurrent, the early redemption penalty must be paid that can be refunded if the purchase is completed within three months.
Properties with annexes
Can be considered by BM Solutions as long as the annex is on the same title as the main building. Also there should be no separate tenancy agreement for the annex
There is no minimum floor size for BMS to accept a studio flat but it’s flat is subject to valuer’s comments
Lending on unencumbered properties are considered remortgages by BM Solutions. Therefore products with free legal and free valuation can be used.
BM Solutions Underwriting – reasons for caution
BM Solutions do not accept applications from first-time buyers, expats or limited companies.
First-time landlords are acceptable.
Foreign nationals must have permanent right to reside to be accepted for borrowing.
Professional landlords are welcome, although portfolio landlords must have minimum earned income of £30,000 per application (that income can include profit from a property portfolio)
BM Solutions will not lend to applicants who have not yet attained the age of 25. Maximum age at application is 75 and maximum age the end of the mortgage is 80.
The minimum amount for additional borrowing (further advance) with Birmingham Midshires is £5,000. Further advances are not available within six months of completion of the original mortgage, or a previous further advance.
Bankruptcy history within the last six years is not accepted.
capital raising is not acceptable for business reasons, purchase of timeshare or gambling.
BM Solutions will accept applications where the property is purchased below market value (unless new build being purchased from a builder)
Arrangements where a property is sold and then leased back by the original owner are not acceptable.
BMS will not accept applications where family of the borrower will live in the property.
Flats adjacent to a business
A flat above or adjacent your business is not acceptable for borrowing.
Maximum Exposure to Lloyds Banking Group
Applicants can have a maximum of five buy to lets with Lloyds banking group, with the maximum lending of £3 million.
Minimum lease term
When there is short lease on the property the minimum term is 70 years at application
BM Solutions do not allow applications where a finder’s fee or commission is payable to any Property Club or any estate agent handling the sale.
Birmingham Midshires will accept applications from portfolio landlords. These applications will need to be supported with proof of income and documentation on all the properties currently owned and let. BMS will not lend where an applicant has more than 10 mortgage buy to let properties (including the one relevant to the application)
The rental portfolio will be subject to an overall affordability calculation in addition to the lending on the target property.
Sources of deposit
BMS will not allow deposit from a business, either cash from the business account, or as a directors loan.
Deposits offered by the vendor are not acceptable.
Second charges are not acceptable as deposits.
Builder cash incentives are acceptable up to 5% of the lower of the purchase price or valuation
Tenants on a single AST
BM Solutions will allow up to 5 tenants on a single AST. Maximum tenancy term is 12 months (unless under a DCLG Modal agreement where five years is acceptable)
Unusual property types
Birmingham Midshires are not interested in lending on bedsits, commercial properties, live work units, mobile homes, timeshares
Mortgage Product Transfer with another Lender? – click below
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