If you hold a mortgage with BM Solutions (Birmingham Midshires), chances are you have been instructed to not engage with them directly and instead use a mortgage intermediary for any mortgage-related matters. If this applies to you, then continue reading for further details.
Who are BM Solutions
Birmingham Midshires (BM Solutions) is a mortgage lender and a division of Lloyds Banking Group, one of the largest banking groups in the UK. BM Solutions offers a range of mortgage products to suit different needs and circumstances, including fixed-rate, tracker, and buy-to-let mortgages.
As mentioned earlier, BM Solutions requires customers to use a mortgage intermediary, such as a broker or financial advisor, to handle any mortgage-related matters. This intermediary acts as an intermediary between the customer and the lender, ensuring that the customer receives the best possible advice and support throughout the mortgage process.
BM Solutions has won several awards for its mortgage products and services, including Best Buy-to-Let Lender at the Mortgage Strategy Awards and Best Mortgage Lender at the British Mortgage Awards.
Are there advantages of using a BM Solutions mortgage broker?
As an existing customer of BM Solutions, you may be interested in reviewing your current mortgage rate if it’s due to expire soon, or you may be contemplating the possibility of porting your mortgage to a new property.
In either case, a BM Solutions broker would be able to guide you through the available options and help you find the best deal for your specific circumstances. Working with a BM Solutions broker has several benefits, including access to their in-depth knowledge and expertise in the mortgage market.
They will provide you with a comprehensive overview of BM Solutions’ products and services, as well as compare and contrast them with other lenders in the market to ensure that you are getting the most suitable deal.
I have an existing BM Solutions mortgage, and they won’t speak to me
We understand that it may be frustrating being unable to deal with BM Solutions directly, but there are several reasons why BM Solutions has adopted this approach.
Firstly, as a specialist lender, BM Solutions has a more complex and niche product offering than traditional high-street lenders. Therefore, intermediaries who have specialised knowledge in this area can provide customers with more in-depth advice and support that is tailored to their specific needs.
Secondly, by operating through intermediaries, BM Solutions can streamline its processes and reduce its costs. This, in turn, allows the lender to offer more competitive rates and fees to customers.
By providing one of our brokers with your BM Solutions mortgage account number, you can easily access the current rates available to you, as well as receive confirmation on your existing mortgage arrangements.
Birmingham Midshires further advances
If you have a BM Solutions mortgage and are looking to release money from your property quickly and cost-effectively, a further advance may be the solution you are looking for.
A further advance is a type of secured loan that allows you to borrow additional funds against the equity in your property. This can be a convenient option if you need to raise money for home improvements, debt consolidation, or other financial needs.
When you take out a further advance, your existing mortgage rate will typically remain unchanged. This means that you will continue to make your regular mortgage payments as normal, and the new borrowing will be added on top of your existing mortgage.
However, the additional borrowing that you take out with the further advance will be subject to a new interest rate, which will be determined by the rates available at the time of your application.
This means that the rate you receive for the additional borrowing may be different from the rate you are currently paying on your existing mortgage.
Birmingham Midshires Product Transfer
If you currently have a BM Solutions mortgage with a mortgage rate that is due to expire, you may be wondering what your options are for renewing your rate.
If you decide to stick with BM Solutions and renew your mortgage rate with them, this is known as a product transfer. This means that you will be transferring your existing mortgage product to a new one, rather than remortgaging with a different lender.
A product transfer can be a convenient option if you are happy with your existing mortgage lender and simply want to renew your rate without going through the hassle of switching lenders. However, it’s important to carefully review the rates and terms of the new product to ensure that it is still the best option for your financial needs.
What are the advantages of finding a whole-market mortgage broker?
Using a whole-market mortgage broker can offer several benefits when it comes to finding the right mortgage deal for your needs.
Here are some potential benefits:
Access to a wide range of lenders: A whole of the market mortgage broker has access to a broad range of lenders, including both high-street banks and specialist lenders. This means they can search the entire mortgage market to find the best deal for your specific financial circumstances.
Expert advice: A whole-market mortgage broker is a trained professional who can offer expert advice on the different types of mortgages available and the pros and cons of each option. They can also offer guidance on the amount of borrowing you can realistically afford, as well as the associated costs and fees.
Time-saving: Searching for the right mortgage deal can be a time-consuming process, particularly if you are not familiar with the market. A whole market mortgage broker can help to streamline the process by doing the legwork for you and presenting you with the best options for your needs.
Help with the application process: A whole of market mortgage broker can guide you through the entire mortgage application process, from filling out the paperwork to liaising with lenders on your behalf. This can help to ensure that the process goes smoothly and reduces the risk of any errors or omissions that could cause delays or complications.
Tailored advice: A whole-of-market mortgage broker can offer personalised advice based on your individual financial situation, taking into account factors such as your credit score, income, and existing debts. This means that the advice you receive is tailored specifically to your needs and can help you make informed decisions about your mortgage options.
BM Solutions full rental income calculator
The recent mini-budget presented by Liz Truss has led to a significant increase in interest rates, which has had a knock-on effect on the buy-to-let market.
One of the main impacts has been on the rental stress tests that banks carry out to assess the affordability of buy-to-let mortgages. These tests have become much stricter, and landlords now need to demonstrate a much higher rental income to achieve the same amount of borrowing as before.
As a result of these changes, remortgaging or purchasing a buy-to-let property has become particularly challenging, especially if you don’t have significant amounts of equity. The increased rental stress tests mean that many landlords may struggle to secure the necessary funding for their properties, which could lead to a decline in the overall buy-to-let market.
One piece of positive news for BM Solutions customers is that the strict rental stress tests that apply to new buy-to-let mortgage applications do not apply to product transfers. This means that if you are an existing BM Solutions customer looking to renew your mortgage deal or switch to a new one, you will not be subject to the same affordability checks as new applicants.
BM Solutions’ full rental income calculations
Limits apply to all BM Solutions Buy to Let products:
- Buy to Let mortgages have a maximum loan amount of £1,000,00
- A maximum loan-to-value of 75% for loan amounts ranging from £25,001 to £1,000,000.
- Additional criteria will apply for Portfolio Landlord Applications
How do I know if a mortgage broker will find me the best rates?
They use sophisticated sourcing systems that scan the market to identify the most suitable options based on your individual circumstances and preferences. Once you have discussed your requirements with your broker and they have ascertained what is important to you, they will use the sourcing system to narrow down the options to the best fit for you.
For instance, if you are looking for a 2-year fixed-rate mortgage, they will search for the best available deals on this specific product. The sourcing system is designed to take into account various factors, including fees, cash backs, and other incentives to calculate the overall cost of borrowing.
This ensures that you get the most cost-effective mortgage deal that matches your requirements. After identifying the most suitable mortgage product for you, the broker will then provide you with a suitability letter that outlines the reasons for their recommendation.
This letter is an important document that provides evidence of the broker’s due diligence in identifying the best mortgage deal for you, and it will also help you understand why the recommended product is the most appropriate for your needs.
How much will it cost me to remortgage?
The cost of remortgaging depends on several factors. If you decide to stick with your current lender, it’s likely that the overall costs will be less.
However, it’s still possible that switching to another lender may be more cost-effective in the long run. Most lenders have tiered product fees, which can range from zero to £2,000 or can be a percentage of the mortgage amount.
Your mortgage broker will help you calculate which option is cheaper overall by taking into account factors like fees, cashback, and interest rates. If you decide to switch lenders, there may be additional fees for valuations, conveyancing, and potentially early redemption fees.
It’s important to weigh these costs against the savings you’ll make by switching to a better deal. Your broker can help you understand the potential costs involved and advise you on the most suitable options for your circumstances.
BM Solution intermediary facts
- No minimum income is required for BTL applications
- Will consider first time landlord applicants
- Applicants must own at least 1 property in the UK
- Applicants do not have to own their own main residence
- Maximum LTV is 75%
- Available to portfolio landlords with 4 or more properties
- Available for HMO properties and on student let’s
BM Products available
Available typically on 2, 3 or 5-year fixed rates or 2-year trackers.
How can Strive Mortgages help?
As previously mentioned, BM Solutions has decided not to engage directly with customers, opting instead to offer their mortgage products through intermediary channels. This strategic decision allows them to focus on their core business while also providing customers with the benefit of receiving expert advice and guidance from mortgage brokers like ourselves.
Our team has extensive experience in arranging BM Solutions mortgages, and we are well-equipped to assist you in finding the most suitable product to meet your individual needs, so get in touch with us.
Whether you are a first-time buyer, looking to move home, or interested in remortgaging, we can help. We understand that navigating the mortgage market can be complex and overwhelming, which is why we are here to guide you through the process.